Live analytics
Sales, fees and margin by channel in your accounting system, not just in your CRM.
Our specialism · E-commerce
Accountants for businesses that sell online
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Marketplaces, web shops, online schools and franchises. We untangle VAT across countries, connect Stripe, PayPal and every sales channel to your books, and give you live figures and a tax forecast from your first months of trading.
- Amazon sellers
- eBay & Etsy
- Shopify & own website
- Online courses & schools
- Franchises
Sound familiar?
Three problems we see in almost every online business
Most sellers don't know they have them until HMRC, a marketplace or a buyer's due diligence finds them first.
You may owe VAT abroad from your very first sale
New sellers usually only know about the UK £90,000 threshold. But selling online courses or digital products to consumers in the EU makes VAT due in the customer's country from the first sale. Goods held in an EU warehouse need a local registration. And how a course is taxed depends on whether it is pre-recorded or live, whether the buyer is a business or a consumer, and where your tutors are based.
- Different rules for goods, digital products and live classes
- B2B or B2C changes who pays the VAT and where
- The USA has no VAT, but state sales tax rules differ in every state
Your income is understated without you knowing
Stripe, PayPal and the marketplaces pay you after taking fees and refunds. If only the money that reaches your bank is recorded, your sales are understated in your accounts and in your returns to HMRC. Money still in transit from the platform to your bank at the month end is also income for that month.
Customer pays£100.00Sale to record
Platform keeps£2.90Fee: an expense
Bank receives£97.10Often recorded as the sale
Example figures for illustration. Fees vary by platform and plan.
An accountant who doesn't know e-commerce
Many sellers rely completely on an accountant who has never set up a marketplace integration or dealt with VAT on digital sales. The books look tidy, but the figures behind them are not. We know this world from the inside: we run our own online courses and set up our own e-commerce accounting, so we have solved these problems for ourselves first.
- We understand how marketplaces and payment platforms report
- We speak the language of your developers
- We look at the whole structure, not just the bank statement
Quick VAT check
Where is your VAT due?
Answer three questions for a first indication. Every business is different, so we confirm your position at the first consultation.
See every answer at a glance
| You sell | VAT position for a UK company |
|---|---|
| Physical goods to consumers in the UK | UK VAT at 20% once you are registered A UK company registers when UK taxable sales go over £90,000 in a rolling 12 months. Marketplaces collect VAT themselves on some sales, so channel matters. |
| Physical goods to businesses in the UK | UK VAT once you are registered Registration is required above £90,000 of taxable turnover. Business buyers can usually reclaim the VAT you charge. |
| Physical goods to consumers in the EU | VAT is due in the customer's country Parcels up to €150 can go through the Import One Stop Shop (IOSS). Stock kept in an EU warehouse, for example with Amazon, usually needs a local VAT registration from the first sale. |
| Physical goods to businesses in the EU | Usually handled on import in the EU Who pays import VAT depends on the delivery terms agreed with your customer. Get these right before you ship. |
| Online courses and digital products to consumers in the UK | UK VAT at 20% once you are registered For a UK company, sales to UK consumers count towards the £90,000 registration threshold. |
| Online courses and digital products to businesses in the UK | UK VAT once you are registered Sales to UK businesses count towards the £90,000 threshold, and the buyer can usually reclaim the VAT. |
| Online courses and digital products to consumers in the EU | VAT in each customer's country from the first sale Online courses and digital products sold to EU consumers are taxed where the customer lives. A UK company has no threshold here and usually reports through the EU non-Union One Stop Shop. |
| Online courses and digital products to businesses in the EU | Usually the business customer accounts for the VAT Under the reverse charge you normally invoice without VAT, but you must keep evidence that the buyer is a business. |
| Live online classes or coaching to consumers in the UK | UK VAT at 20% once you are registered Live online teaching to UK consumers counts towards the £90,000 threshold. Some education can be exempt, so check your case. |
| Live online classes or coaching to businesses in the UK | UK VAT once you are registered Business-to-business live training is generally taxed in the UK if your customer is in the UK. |
| Live online classes or coaching to consumers in the EU | VAT in the customer's country Since January 2025, live-streamed education and events sold to EU consumers are taxed where the customer lives. Where your tutors are based can also matter. |
| Live online classes or coaching to businesses in the EU | Usually the business customer accounts for the VAT For services to EU businesses the reverse charge normally applies. Keep evidence of your customer's business status. |
| Any sales to customers in the USA | No VAT, but check US state sales tax The USA has no VAT. Most states charge sales tax with their own thresholds, and some tax digital products. We tell you where you may have obligations. |
For online sellers
E-commerce VAT review: a review of your business, not just a consultation
You book a time that suits you, then send us your sales and payment reports at least 4 days before we meet. We study how your business actually sells: channels, marketplaces, payment platforms and sales by country. On Zoom we go through what we found, which VAT registrations you need and how to put things right.
- Book online at a time that suits you
- Send your documents at least 4 days before
- 60 minutes on Zoom, recorded, with a written summary
- Full refund if you cancel at any time before the start
£600fixed fee, including VATBook a VAT review Not sure yet? Book a free 15-minute meeting
How we work with you
From scattered platforms to one clear system
We start with the structure of your business, then build the accounting around it, so it runs by itself every month.
- 1
Structure review
At the first consultation we map your sales channels, payment platforms, how each transaction flows, where your staff and directors are and where the company is registered.
- 2
Right software
We choose the accounting system and connectors that fit your channels, volumes and countries.
- 3
Automation
Every platform feeds your books automatically. Where no ready connector exists, we design the link with Make, Zapier or an API and work with your developers, or recommend ours.
- 4
Monthly books and VAT
We reconcile every channel, administer your VAT and send each return to you for approval before it is filed.
- 5
Live figures and tax plan
You see your results and an estimate of the year's tax from the first months, not after the year end.
What you get
Clear numbers, planned tax, no surprises
The result of a well-built system is visible every month, and it protects you if HMRC ever asks questions.
Tax you can plan
An estimate of the tax due for the year from your first months of trading.
Ready for HMRC
A full trail behind every figure, so a compliance check is a request for documents, not a crisis.
VAT handled
Registrations, returns and schemes in the UK and abroad, administered for you.
E-commerce All-Inclusive
One monthly fee for everything
- Set-up and automation of your accounting
- Bookkeeping and reconciliation of every channel and payment platform
- VAT administration and returns
- Live figures and a tax forecast
- Your own WhatsApp group with your accountant
- Every filing sent to you for approval first
Ready-made integrations are included. Custom development, where no ready connector exists, is quoted separately.
From £500 a month, or 1% of monthly sales if higher
Work out your fee
£
Your monthly fee£500Fixed fee
No upper limit: from about £600,000 of annual sales the fee is always 1% of your monthly sales, whether you turn over £3 million or £30 million. Final price confirmed in your engagement letter.
Book a free Zoom meeting
Why Kairos-K
We run e‑commerce ourselves
We sell our own online courses, so we have connected payment platforms, set up VAT on digital sales and automated our own books. We bring that experience to your business, together with our AIA practising certificate and HMRC agent status.
About our teamQuestions
E-commerce accounting questions
Scroll over them, use the arrows or select a question.
It depends on what you sell and where your customers are. A UK company only has to register for UK VAT once its UK taxable turnover goes over £90,000. But sales to consumers in the EU of digital products and online courses are taxed in the customer's country from the first sale, and goods stored in an EU warehouse usually need a local VAT registration straight away. We check your position at the first consultation.
Pre-recorded courses and downloads are usually treated as electronically supplied services, taxed where the consumer lives. Live online classes follow different rules, and since January 2025 EU live-streamed education sold to consumers is also taxed where the customer is. Selling to businesses usually moves the VAT to the customer under the reverse charge. Where your tutors are based also matters. We map all of this for your business model.
The USA has no VAT, but most states charge sales tax, and each state sets its own rules and thresholds. We tell you where you may have obligations so you can deal with them before they become a problem.
Stripe, PayPal, Amazon and other platforms take fees, refunds and chargebacks before paying you. Your sales must be recorded at the full amount and the fees as expenses, and money still on its way to your bank at the month end is still income for that month. If only bank receipts are recorded, both your accounts and your tax returns are wrong.
We start with Xero or QuickBooks and their ready-made integrations. Where a platform has no ready connector, the link can be built with Make, Zapier or an API. We write the accounting brief and work alongside your own developers, introduce developers we trust, or build it ourselves. Custom development is quoted separately.
Set-up and automation of your accounting with ready-made integrations, monthly bookkeeping, reconciliation of every sales channel and payment provider, and VAT administration with returns. The fee is £500 a month, or 1% of your monthly sales if that is higher. We confirm exactly what is included in your engagement letter.
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Start with a structure review
Tell us where and what you sell
We look at your channels, payment platforms and VAT position and come back within one business day.
Book online
Talk to an accountant on Zoom
Choose a time that suits you. Prices include VAT, and you can reschedule or cancel free of charge before the start.
E-commerce VAT review
A review of your business: send your reports 4 days before, then 60 minutes on Zoom.
£600Book
Tax consultation
60 minutes on Zoom with an accountant. Any UK tax or accounting question.
£120Book
Free quote meeting
15 minutes on Zoom. Tell us about your business and we send you a quote.
FreeBook free
Guides
Read before you decide
Plain-English guides by our accountants on the questions clients ask us about this service.
