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Selling goods to UK customers: how VAT works

Short answer

When you sell goods from abroad directly to UK consumers, consignments of £135 or less have UK VAT charged at the point of sale, so you must register and charge it. Above £135, import VAT is charged at the border instead. Sales through an online marketplace follow separate rules.

Based in the UK? Different rules apply. See the £90,000 VAT threshold, or how we register UK businesses.

Low-value consignment limit
£135
Standard VAT rate
20%
EORI number prefix for GB
GB

How does UK VAT on imports under £135 work?

For goods outside the UK sold directly to customers in Great Britain in consignments of £135 or less, VAT is charged at the point of sale, not at the border. The seller must register for UK VAT and charge it at checkout. There is no import VAT on these consignments. If a marketplace facilitates the sale, the marketplace charges the VAT instead.

ConsignmentSold directly to UK consumersSold through an online marketplace
£135 or lessYou register and charge UK VAT at checkoutThe marketplace charges UK VAT at checkout
Over £135Import VAT and any duty at the borderImport VAT and any duty at the border
Goods already in the UKYou register and charge UK VATThe marketplace charges UK VAT

Who charges UK VAT on goods sold to UK consumers?

Where are the goods when you sell them?
Already in the UK
Sold through an online marketplace?
YesThe marketplace charges VAT
NoYou register and charge VAT
Outside the UK
Is the consignment £135 or less?
Yes, via a marketplaceThe marketplace charges VAT at checkout
Yes, sold directYou register and charge VAT at checkout
Over £135Import VAT at the border, paid by the importer
  • Marketplace
  • You
  • Border
Great Britain, sales to consumers. Business customers who give a UK VAT number account for the VAT themselves. Northern Ireland follows different rules.

How do I work out the consignment value?

Use the intrinsic value: the price the goods were sold for, excluding transport and insurance if they are shown separately on the invoice. Add together all items sent in one consignment. The rule doesn’t apply to excise goods such as alcohol and tobacco.

What happens to consignments over £135?

They are imports. Import VAT and any customs duty are due at the border and are usually paid by whoever is the importer on the customs declaration. If that is your customer, they pay before delivery unless you ship on delivered-duty-paid terms.

What is postponed VAT accounting?

Postponed VAT accounting lets a UK VAT-registered business declare and reclaim import VAT on the same VAT return, instead of paying it at the border and waiting to reclaim it. You don’t need HMRC’s approval to use it. A business with no UK establishment needs someone, such as a customs agent, to deal with customs and must tell them in writing to use it.

Who can reclaim the import VAT?

Normally only the importer shown on the customs declaration can reclaim import VAT, and only if it is registered for UK VAT. This is why the importer of record matters: if your customer or logistics provider is the importer, you cannot reclaim it.

Do I need an EORI number to sell to the UK?

Yes, if you move goods into or out of Great Britain as the importer or exporter. You need an EORI number starting with GB. An EU EORI number is not accepted for GB customs. It is a separate registration from VAT.

Common scenarios

“We ship £40 parcels from Germany to UK consumers from our own site.”

Each parcel is under £135, so UK VAT is due at the point of sale. You must register for UK VAT, charge 20% (or the correct rate) at checkout and file UK VAT returns.

“We send bulk stock to a UK warehouse, then sell to UK customers.”

The stock movement is an import: pay import VAT, or use postponed VAT accounting once registered. The later sales are of goods already in the UK, so they are UK taxable supplies and you must register.

“We sell £500 machines to UK businesses.”

Over £135, so import VAT is due at the border. If your business customer is the importer, they account for it and there may be nothing for you to register. If you import them yourself, you need a GB EORI and, in practice, a UK VAT registration to recover the import VAT.

Importing into the UK? Get the structure right first.

We confirm who should be the importer, register you for VAT and set up postponed VAT accounting with your customs agent.

Get in touchSee fixed fees

Frequently asked questions

Is the £135 rule changing?

The government has been reviewing the £135 low-value relief. We will update this page and the updates log as soon as HMRC changes the rules.

Does the £135 rule apply to Northern Ireland?

Not in the same way. Goods from outside the UK and EU sold directly to customers in Northern Ireland have import VAT charged instead. Northern Ireland follows some EU rules for goods.

Can I use postponed VAT accounting without a UK VAT number?

No. Your business must be registered for VAT in the UK to use postponed VAT accounting.

What if my customer is VAT-registered?

For consignments of £135 or less sold to a UK VAT-registered business that gives you its VAT number, the customer accounts for the VAT under the reverse charge.

Amazon, eBay and Etsy sellersWhen the marketplace exemption applies, and when it doesn’t.UK VAT for overseas businesses (NETP)No threshold. Register within 30 days of your first UK sale.What counts as a UK establishmentA registered or virtual office alone does not count.How to register, step by stepThe HMRC application and a documents checklist.VAT registration pricingFixed fees, published.

Sources

General information based on HMRC guidance as at 27 September 2026, not advice for your situation. Rules change and depend on your facts. Talk to us before acting.