Moving a UK online business to Dubai: Amazon, Shopify and the e-commerce licence

Alan runs UK online stores on Amazon and Shopify himself, so seller verification, disbursement accounts and marketplace VAT are familiar ground. An online business is easy to move on paper: no premises, no staff on site, customers who never see your address. The work is in the accounts and the tax, and both need doing in a set order.

Who it's for

• Amazon FBA and FBM sellers with UK or EU marketplaces
• Shopify and direct-to-consumer brands selling to UK customers
• Etsy, eBay and TikTok Shop sellers outgrowing a sole-trader setup
• Sellers who want to add Amazon.ae and the Gulf market from a local base
• Owners planning to sell the business, now or after the move

What's included

• A free zone company with e-commerce activities that match what you sell
• Residence visa, Emirates ID and a business bank account that accepts marketplace income
• The order of the marketplace, payment-gateway and bank switches
• UK VAT on UK-held stock and marketplace sales, with your accountant
• Your Statutory Residence Test plan and departure date
• What happens to your UK company or sole-trader business, and any sale

The e-commerce licence

Most UAE free zones license e-commerce, usually as activity groups for online trading in particular goods or for general trading. Pick the activities to match what you sell and where it ships from: they decide what you can import into the UAE, what the bank expects to see in your statements, and whether you can add a Gulf storefront later. A seller who only ships from UK and EU warehouses needs a different activity mix from one who wants stock in Dubai.

Free zone versus mainland follows the same rule as any business: a free zone company suits sales to customers outside the UAE; selling to UAE consumers from local stock raises the mainland and customs questions (free zone vs mainland). We do not publish authority prices; you get one all-in figure for your setup.

Switching Amazon, Shopify and the payment accounts

• First: UAE company, licence and business bank account
• Then: marketplace and gateway legal details, with the new bank account for disbursements
• Last: the old UK entity stops trading, once payouts have moved

Marketplaces verify the legal entity behind a seller account. Changing that entity to a UAE company, or its country, triggers verification again: company documents, the new address, identity checks and a bank account in the company's name. Plan the switch so the bank account exists before you change the legal details, and so a verification hold does not land in your busiest month.

Payment gateways vary in which countries' companies they support, so check yours before you switch Shopify. Keep the UK account details until the new ones are verified and paying out.

UK VAT when the stock stays in the UK

Most sellers who move keep selling to UK customers from UK warehouses. When your business is established outside the UK, the online marketplace usually accounts for the VAT on sales to UK consumers of goods already in the UK, but your company may still need its own UK VAT registration, for importing the stock for example (GOV.UK: VAT and online marketplaces). Shopify sales are not marketplace sales, so VAT on those stays with you. We work through this with your UK accountant before the switch.

Stock held in the UK also raises the question of whether the UAE company has a taxable presence in the UK. For a seller using third-party fulfilment it is usually manageable, but it needs looking at.

Tax on both sides

In the UAE, corporate tax is 9% on taxable profits above a threshold. A free zone company can pay 0% on qualifying income if it meets the conditions, but transactions with individuals (natural persons) are an excluded activity for most businesses, and income from them is taxed at 9%, so an e-commerce business selling to consumers should not assume the 0% rate (who pays the 9%; Federal Tax Authority: free zone persons).

On the UK side, the business has to be run from the UAE and you have to become non-resident under the Statutory Residence Test, or the UK can still tax the profit through you or through the company (central management and control). If you plan to sell the business, the order matters: as at October 2026 Business Asset Disposal Relief gives 18% on qualifying disposals and other gains are taxed at up to 24% while you are UK resident (selling before Dubai).

How it works

1. Discovery call

   Your marketplaces, where stock sits, your UK entity, VAT position and the date you want to go.

   Typical timing: Week 1

2. Plan

   Activities, free zone, the order of the account switches, the VAT position and the UK tax plan, reviewed by a UK Chartered Tax Adviser.

   Typical timing: Weeks 1 to 2

3. Company, visa and bank

   Licence, residence visa, Emirates ID and a business bank account that understands marketplace income.

   Typical timing: Typically 4 to 7 weeks

4. Switch the accounts

   Marketplace and gateway legal details, disbursement accounts, UK VAT registration where needed.

   Typical timing: After the bank account opens; allow for verification

5. Close the UK side

   The UK entity stops trading, the P85 and final return, and day-count tracking.

   Typical timing: From your departure date

Official sources, as at October 2026: GOV.UK: VAT and overseas goods sold through online marketplaces; Federal Tax Authority: corporate tax; Federal Tax Authority: basic tax information bulletin, free zone persons; u.ae: corporate tax rates; GOV.UK: Business Asset Disposal Relief. Rules and thresholds change; we confirm the current position for your case before you act. This page is general guidance, not personal tax or legal advice.