Setting up a TikTok Shop in the UK or USA can be tricky, especially if you’re not a resident of those countries. There are several challenges non-residents face, from account verification to VAT issues, and even logistics. In this guide, we’ll walk you through the most common problems and show you how to overcome them, so you can start selling successfully.
1. Account Verification Issues (UK & USA)
One of the biggest hurdles non-residents face when setting up a TikTok Shop account is account verification.
- For the USA: TikTok Shop requires a Social Security Number (SSN) for account verification. Unfortunately, using an ITIN (Individual Taxpayer Identification Number) won’t work for most cases. This leaves non-residents in a tough spot. Some try to get around this by using a friend’s or family member’s SSN, but this can cause tax implications for that person. TikTok reports income under the SSN used, which means the person will get a 1099 form and may need to file taxes on the income.Solution: If you go this route, ensure the person whose SSN is being used knows they’ll need to report the income and can offset it with expenses. Alternatively, you can use professional services that help non-residents set up TikTok Shop accounts legally.
- For the UK: Similar to the USA, TikTok Shop UK requires business verification, including a legal director. Some people attempt to buy accounts set up with fake IDs or temporary directors, but TikTok regularly audits accounts, which could lead to account suspensions if any discrepancies are found.Solution: Set up your business properly from the start with a reliable local director. Avoid shortcuts that could get your account banned.
2. VAT Issues and 3PLs in the UK
Another common issue for non-resident sellers in the UK is VAT registration. If your turnover exceeds £85,000, you’re required to register for VAT, but the process can take weeks or months to complete. This can slow down your ability to launch your business.
Many 3PLs (third-party logistics providers) won’t work with businesses unless they are VAT-registered, which can delay your fulfillment process.
Solution: There are 3PLs that offer VAT-free services, meaning they can handle your logistics even if you’re not VAT-registered yet. This allows you to start selling sooner and get your business running while waiting for VAT approval.
3. Shipping and Logistics Problems (UK & USA)
When using a 3PL or dropshipping model as a non-resident, you may run into issues with shared business addresses. If you’re using a common registered agent address, TikTok or Shopify may flag it, leading to account holds or payment freezes.
Solution: It’s important to use a legitimate business address. You can rent a private office or find a 3PL that provides a unique, non-public address for your business. This will help you avoid payment issues and account suspensions.
4. Getting Stuck with the Wrong Director (UK)
Many non-residents mistakenly choose a temporary director to set up their TikTok Shop UK account, thinking they can change it later. Unfortunately, once an account is verified, changing directors is nearly impossible, and attempting to do so can lead to account suspension.
Solution: From the start, choose a director who is trustworthy and will remain with your business for the long term. You can also hire professional services to appoint a local director on your behalf to ensure compliance and stability for your TikTok Shop.
5. Persistence Pays Off (USA TikTok Shop)
Some sellers have found that persistence can be key when dealing with TikTok Shop verification. One case involved a seller who didn’t have a Social Security Number but was able to get their TikTok Shop account approved by repeatedly contacting TikTok support and providing detailed financial documentation.
Solution: If you’re facing verification issues, don’t give up. Stay in contact with TikTok’s support team and provide the necessary documents. Sometimes persistence is what makes the difference in getting your account approved.
Other Common Pitfalls to Avoid
- Using Fake IDs: Some people try to use fake IDs to set up TikTok Shop accounts. While this might seem like a quick fix, it’s one of the fastest ways to get banned. TikTok regularly audits accounts, and once they flag an account, it’s extremely difficult to recover.
- Skipping Important Steps: Make sure you’re not rushing through your business setup. Skipping key steps like VAT registration, choosing the right director, or securing a legitimate business address can cause long-term issues. Taking the time to set things up properly will save you headaches down the road.
Conclusion
Setting up a TikTok Shop in the UK or USA as a non-resident comes with its challenges, but with the right approach, they can all be overcome. Whether it’s navigating account verification, VAT issues, or logistics, there’s always a solution.
If you’re dealing with any of these problems or need more guidance, feel free to ask questions in the comments! I’m happy to help you find the best solution for your situation.
Need more detailed advice? Visit Smartsale.tech for professional services that can help you get set up the right way.
