Consignment not more than £135
UK VAT will be charged at the point of sale, i.e. at the checkout. This is called ‘supply VAT’. There will be no import VAT.
If an OMP does not facilitate the sale:
- the business must report and pay the supply VAT
- the business must have a UK VAT registration
- a copy of the tax invoice must accompany the goods in transit – this will allow checks to take place at the border
If an OMP facilitates the sale, the OMP will account for VAT at the point of sale.
If the overseas seller only sells goods via OMPs in consignments not exceeding £135:
- it will not require a UK VAT registration
- it will require a GB EORI number to enable completion of UK simplified customs declarations
Note: it is possible to obtain a GB EORI number without a UK VAT registration.
Consignment exceeds £135
Normal customs processes and VAT rules will apply. From 1 January 2021 goods imported into the UK require customs declarations (whether immediate or deferred) and may be subject to customs duty.
VAT-registered business can use postponed VAT accounting to account for import VAT on their VAT return, rather than paying import VAT on clearance and waiting to reclaim this. Please refer to our general Brexit guidance for more details.
The sale to the customer is subject to normal UK VAT. The trader will need to have a UK VAT registration.
- Determine how you will establish the consignment value of goods located outside the UK at the point of sale
- Establish if an OMP facilitates your sales
- Implement the necessary steps, depending on the consignment value of goods
What if it is a B2B sale?
B2B sales not exceeding £135 are subject to the reverse charge by the UK customer where a valid VAT number is provided.
B2B sales exceeding £135 are subject to the normal customs and VAT rules. It will be necessary to establish which party is importing the goods into the UK – this will be determined by the INCOTERMS. If the seller is importing the goods, import VAT and customs duty may arise and the onward sale to the business customer will be subject to UK VAT in the normal way.
If the business customer is importing the goods into the UK, it will need to manage the import VAT and customs duty position.