# UK VAT on goods sold to UK customers

> How UK VAT works for overseas sellers: VAT at checkout up to £135, HMRC registration, when a marketplace is responsible, sales above £135 and Northern Ireland.

Source: https://border.bot/docs/guides/countries/united-kingdom/vat
Last updated: 2026-10-30

> Documentation index: https://border.bot/llms.txt. Every page is Markdown at its URL + `.md`.


For a consignment of £135 or less sold to a consumer in Great Britain, the seller charges UK VAT at the point of sale and pays it to HMRC on its VAT return, and when the sale goes through an online marketplace the marketplace does this instead. Above £135, VAT is charged at import under the normal rules, so a seller outside the UK selling direct needs a UK VAT registration from its first sale.

Rules as of 30 October 2026.

## Who has to register for UK VAT?

A business with no UK establishment, which HMRC calls a non-established taxable person, has no VAT registration threshold: it must register as soon as it makes taxable sales in the UK or expects to within the next 30 days, and tell HMRC within 30 days of becoming liable. Selling a consignment of £135 or less directly to a UK consumer is such a sale.

An overseas seller that sells only to non-business customers through online marketplaces can apply for exemption from registration, because the marketplace accounts for the VAT. A seller that sells only to UK VAT-registered businesses, or only zero-rated goods, doesn't need to register either. A business already registered for UK VAT doesn't register again for these sales.

## How do you charge VAT on a sale of £135 or less?

On a direct sale of a consignment worth £135 or less to a consumer in Great Britain, the seller charges UK VAT at the rate for the goods, issues a normal VAT invoice and declares the VAT on its UK return. The parcel then crosses the border without import VAT and without customs duty, unless it contains excise goods.

The £135 test uses the intrinsic value of the whole consignment, the sale price of all items sent together, without separately shown transport and insurance. If a business customer gives you a valid UK VAT number, which you can check with HMRC's online service, you don't charge VAT: note "reverse charge: customer to account for VAT to HMRC" on the invoice and the customer accounts for it. Keep full records, including invoices, for six years. Consignments with excise goods, gifts, and goods from Jersey and Guernsey covered by the Import VAT Accounting Scheme follow other rules.

## When is the marketplace responsible for VAT?

An online marketplace is liable for UK VAT, and charges it at the point of sale, on two kinds of sale it facilitates: consignments of £135 or less imported from outside the UK, whoever the seller is, and goods already in the UK sold by an overseas seller, at any value. On consignments over £135 imported from outside the UK it doesn't charge VAT at checkout; normal import rules apply.

When goods already in the UK are sold by an overseas seller through a marketplace, the seller is treated as making a zero-rated supply to the marketplace. For a business customer with a UK VAT number the marketplace doesn't charge VAT on a consignment of £135 or less; the business accounts for it instead. In June 2026 HMRC also proposed making marketplaces liable for sales by UK-based sellers, with a consultation that closed on 18 August 2026.

## What happens to VAT above £135?

A consignment with an intrinsic value over £135 is imported under the normal rules: import VAT and any customs duty are paid at the border, by the buyer when you ship DAP or by your side when you ship DDP, and you don't charge UK VAT at checkout. Duty depends on the commodity code and origin under the UK tariff.

**UK duty on cotton T-shirts (HS 6109.10)**

| Country | General duty | National lines | Preferential rates |
| --- | --- | ---: | --- |
| United Kingdom |  | 0 |  |

_border.bot live data from each country's official publications_

For DDP shipments over £135, the importer of record pays the import VAT and duty; the [DDP guide](https://border.bot/docs/guides/ddp) covers who that should be.

## A worked example

A customer in Leeds orders a jacket for £80 and a scarf for £20 from a store outside the UK selling direct, with £8 delivery. The intrinsic value is £100, under £135, so the store charges UK VAT at checkout and there is no customs duty.

| Line | Amount |
| --- | --- |
| Goods (intrinsic value £100) | £100.00 |
| Delivery | £8.00 |
| UK VAT at 20% | £21.60 |
| Customer pays | £129.60 |

The store declares the £21.60 on its UK VAT return. If the same customer added a £50 pair of boots, the consignment would be worth £150, over the limit: the store would stop charging VAT at checkout, and the carrier would collect import VAT and duty at the border unless the store shipped DDP. The [landed cost calculator](https://border.bot/tools/landed-cost-calculator) shows both cases for a real product.

## How does VAT work for Northern Ireland?

Northern Ireland follows EU rules for goods under the Windsor Framework, but a consignment of £135 or less sent to a consumer there from outside the UK and EU is still taxed at the point of sale: the seller accounts for VAT on its UK return instead of VAT being collected at the border, and the old import VAT relief for goods of £15 or less no longer applies.

For goods already located in Northern Ireland and sold through a marketplace, the marketplace is liable when the seller is established outside both the UK and the EU; a UK or EU seller accounts for the VAT itself. Customs duty on goods at risk of entering the EU follows EU rules, covered in the [UK import guide](https://border.bot/docs/guides/countries/united-kingdom).

## Common questions

### Do I need a UK VAT number to sell to UK customers?

Yes, if you sell consignments of £135 or less directly to UK consumers from your own store, since businesses with no UK establishment have no registration threshold. If you sell only through marketplaces to consumers, the marketplace handles the VAT and you can apply for exemption from registration.

### Can I charge UK VAT on orders over £135?

No. You charge UK VAT at checkout only on consignments of £135 or less. Above that, import VAT is charged at the border, and you can ship DDP to pay it on the buyer's behalf.

### Does the £135 limit include shipping?

No, as long as the transport and insurance costs are shown separately. The limit is measured on the intrinsic value of the whole consignment.

## Sources

- [VAT and overseas goods sold directly to customers in the UK](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk), HMRC, last updated 13 May 2022
- [VAT and overseas goods sold to customers in the UK using online marketplaces](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces), HMRC, last updated 13 May 2022
- [Charging VAT when goods are sold if you're an online marketplace operator](https://www.gov.uk/guidance/charging-vat-when-goods-are-sold-if-youre-an-online-marketplace-operator), HMRC, last updated 20 June 2025
- [Who should register for VAT (VAT Notice 700/1)](https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat/vat-notice-7001-should-i-be-registered-for-vat), HMRC, updated 5 August 2026
- [Extending VAT online marketplace liability to combat non-compliance](https://www.gov.uk/government/consultations/extending-online-marketplace-liability-to-combat-non-compliance/extending-vat-online-marketplace-liability-to-combat-non-compliance), HMRC and HM Treasury, updated 28 October 2026
- [Reforming the customs treatment of low value imports into the United Kingdom: consultation response](https://www.gov.uk/government/consultations/reforming-the-customs-treatment-of-low-value-imports-into-the-united-kingdom/outcome/reforming-the-customs-treatment-of-low-value-imports-into-the-united-kingdom-consultation-response), HM Treasury, 13 July 2026
- [VAT rates](https://www.gov.uk/vat-rates), GOV.UK, accessed 30 October 2026