VAT on goods sold into the UK

The first question: where are the goods when you sell?

UK VAT on goods from abroad depends on two things: the value of the consignment and where the goods are at the moment of sale. If they are still abroad and go to the customer as a parcel, the consignment value decides. If they are already in a warehouse in England, Scotland or Wales, the value does not matter.

For the consignment value, what counts is your selling price, excluding delivery and insurance if shown separately on the invoice, and excluding other taxes and charges. If several items are in one parcel, the total counts. The £135 limit applies to the whole consignment, not the individual item.

The customs side, meaning EORI, commodity codes and rules of origin, is summarised in our Brexit section. This page is about who pays UK VAT when, and whether you need your own UK VAT number for it.

Parcels up to £135 direct to customers: you owe the tax

If you sell a consignment of up to £135 through your own shop to a customer in Great Britain, no import VAT is charged at the border. Instead you charge UK VAT at the point of sale, as if you were a UK retailer. For that you must register with HMRC, know the right rate for each product, and pay the tax with your UK VAT return. The old relief for small consignments up to £15 no longer exists.

If you sell the same consignment to a UK business that gives you its UK VAT number, you charge no UK VAT. You check the number with HMRC's checker, put a note such as 'reverse charge: customer to account for VAT to HMRC' on the invoice, and your customer accounts for the tax. If you only supply registered businesses this way and the goods are outside the UK at the time of sale, you need not register.

Two practical traps: if you change the consignment value after the sale, say because the customer orders more and it all goes in one parcel, and it then exceeds £135, import VAT and duty may arise and the VAT already charged must be corrected. And you must keep the records, including invoices, for six years.

Selling through a marketplace: the marketplace pays, you stay on the hook

If you sell through an online marketplace, the liability shifts. HMRC treats as a marketplace a website or app that sets the terms of sale, is involved in payment and takes part in ordering or delivery. For consignments up to £135 from abroad the marketplace owes the UK VAT. The same applies to goods of any value already in the UK at the time of sale, where a seller without a UK establishment sells them through the marketplace.

That does not take you out entirely. If you move goods into a UK warehouse yourself, you owe import VAT and any duty on import. On the later sale, for VAT there is a zero-rated supply from you to the marketplace, a deemed supply. You only get the import VAT back if you are registered in the UK. If the marketplace sells your goods from the UK warehouse to a business with a UK VAT number, you must register anyway and account for VAT on that sale yourself.

Expect the marketplace to ask for your number. HMRC can hold marketplace operators jointly liable for the VAT of sellers who should have registered. So platforms check their overseas sellers' numbers and must display a verified number on their site within ten days.

Stock in a UK warehouse: registration from the first pound

If you own goods that are in the UK at the time of sale and sell them directly to customers in the UK, you must register and account for VAT on every one of those sales, whatever the value. The well-known £90,000 threshold applies to UK businesses, not to you as a business without a UK establishment. The details of registration are in the UK VAT number.

Check your logistics provider too. Anyone in the UK storing goods for sellers without a UK establishment generally needs approval under the Fulfilment House Due Diligence Scheme. Without it they may not trade; they face a £10,000 penalty and prosecution. Approved warehouses appear on a public HMRC list and must check their customers. So a reputable provider will ask for your UK VAT number before accepting your stock.

For corporation tax, by the way, a mere warehouse is not a permanent establishment: UK treaties typically exclude facilities used solely for storing, displaying or delivering your own goods. When more presence turns into a permanent establishment is explained in branch or subsidiary.

Over £135 and stock: import VAT with postponed VAT accounting

For consignments over £135 the normal import rules apply: on import into Great Britain, import VAT and any duty arise. Whoever imports pays. But if you import with a UK VAT number, you need not pay the import VAT upfront. With postponed VAT accounting you declare it in your VAT return and reclaim it as input tax in the same return. No approval is needed.

As a business without a UK establishment you need a customs agent or freight forwarder to make the import declaration for you. They need your written instruction to choose postponed VAT accounting and enter your details as importer. You find the amounts later in your monthly statement, which you download online. One exception: for consignments over £135 arriving through the Royal Mail Group postal service, the procedure is not available.

For goods, Northern Ireland still follows EU rules, with its own procedures. That is covered in our Brexit section.

Sources: GOV.UK: VAT and overseas goods sold directly to customers in the UK; GOV.UK: VAT and overseas goods sold to customers in the UK using online marketplaces; GOV.UK: Check when online marketplaces must carry out VAT checks on overseas sellers; GOV.UK: Apply for the Fulfilment House Due Diligence Scheme; GOV.UK: Check when you can account for import VAT on your VAT Return; GOV.UK: Register for VAT; GOV.UK: Budget 2026