What changes when you sell on TikTok Shop in the UK instead of the US? Three things hit the margin before the first video posts. The platform fee is 9%, not 6%. The price shoppers see includes 20% VAT. And you need a UK business, a UK-resident representative, UK stock and a UK returns process to open a shop. The launch method stays the same. Your price and your planned margin change.
This page walks through each difference, then redoes the margin math for the same product in both markets. For the US version of the math, see the margin gate.
What is the TikTok Shop fee in the UK?
The UK platform fee is 9% for most categories. The US fee is 6%. The UK rate was confirmed on 26 October 2026. Some categories carry a different rate, and guides online disagree on the exact figure, so read your own category in Seller Center before you plan.
Creator commission is separate and set by you. Most brands offer creators 10% to 20% of each sale, in both markets.
What does VAT do to your margin?
UK prices include 20% VAT, so one sixth of the shelf price is not yours. A £40 product brings in £33.33 before any cost. A US product at $40 brings in $40 before sales tax, because US sales tax is added at checkout.
A US cost stack copied across overstates UK profit. Build the UK margin on the ex-VAT number.
Guides disagree on whether the TikTok fee is charged on the price with VAT or without it. The example below shows both, so you can see how much it matters. Check a sample invoice before you finalise your numbers.
How does the margin change? A worked example
Take one product at $40 in the US and £40 in the UK. Same costs per order for the product itself (product cost 6, delivery 5 in the US and 4 in the UK, which are example numbers: use your own), creator commission at 20% and GMV Max ads at 20% of revenue. Smart Promotion is left out of both so the two columns compare cleanly.
| Per order | US ($) | UK, fee on ex-VAT price (£) | UK, fee on VAT-inclusive price (£) |
|---|---|---|---|
| Shelf price | 40.00 | 40.00 | 40.00 |
| VAT (20%) | 0 | -6.67 | -6.67 |
| Revenue you keep | 40.00 | 33.33 | 33.33 |
| Product cost | -6.00 | -6.00 | -6.00 |
| Delivery | -5.00 | -4.00 | -4.00 |
| Platform fee (US 6%, UK 9%) | -2.40 | -3.00 | -3.60 |
| Creator commission (20% of revenue kept) | -8.00 | -6.67 | -6.67 |
| GMV Max ads (20% of revenue kept) | -8.00 | -6.67 | -6.67 |
| Left for team and profit | 10.60 | 7.00 | 6.40 |
| Share of the shelf price | 26.5% | 17.5% | 16.0% |
The US order leaves about a quarter of the shelf price. The UK order leaves about a sixth. Most of the gap is VAT. The 3-point fee difference costs you about £1 on this order. VAT costs you £6.67.
Two rules follow from the table.
- If you copy the US price into pounds, you keep less of it. In this example the order keeps 26.5% of the shelf price in the US and 16% to 17.5% in the UK. Set the UK price from the ex-VAT revenue you need, then add 20%.
- The margin gate applies to the ex-VAT number. We want about 60% landed margin before any TikTok cost. Here the UK order has (33.33 minus 6 minus 4) divided by 33.33, which is 70%. The gate passes, but the room above it is smaller than the shelf price suggests.
What do you need to open a UK shop?
TikTok's UK seller registration policy asks for a UK business, a UK-resident representative, UK stock and UK returns (checked 4 October 2026). A US brand that wants UK sales has to set these up first, and the setup time belongs in the launch timeline.
