UK VAT settingsLearn how to activate UK VAT collection.
There are options available for how to handle low-value orders and collection of United Kingdom (UK) VAT, and you can manage your UK VAT settings in Dashboard. If you do not want to manage it on your own, Zonos' Landed Cost guarantee service can handle this for you. If you do not allow low-value orders, you do not need to register for a VAT number with His Majesty's Revenue and Customs (HMRC).
To manage your UK VAT settings in the Dashboard go to Settings and then choose Tax IDs.
Next, select United Kingdom from the "Select country" dropdown.
Clicking Add will result in a pop-up dialog (shown below) with your options.
There are two options for handling low-value orders and collection of UK VAT
Read more about the UK VAT scheme law and compliance.
Allow low-value orders to the UK (135 GBP or less) (recommended)
- VAT will be calculated and collected on all low-value orders.
- You must register with HMRC to obtain a VAT number and remit the VAT collected every quarter. (Our Landed Cost guarantee service will manage all of this for you if you do not want to manage it on your own.)
- Orders over 135 GBP will still collect VAT if your store is set to allow customers to prepay duties and taxes, but it will be paid by the shipper on your behalf. You will not need to remit this.
If the option above is selected, you will be prompted to add your VAT number. If you don't yet have your VAT number, you can still save the setting to begin collecting VAT on UK low-value orders. You will want to register for your VAT number ASAP and will be assigned quarterly VAT return and payment deadlines once you are registered. You can find the deadlines in your VAT online account.
Do not allow low-value orders to the UK (135 GBP or less)
Orders with an item total of 135 GBP or less will not be allowed.
- If you use Zonos Checkout customers will be notified that you do not ship to the UK unless the item total is over 135 GBP.
- If you use any of our landed cost plugins, customers will not be shown shipping options for these orders.
You will not need to register for a VAT number with HMRC.
If you allow your customers to prepay duty and tax, expect it to function as before, where you will collect duty and tax and the shipper will pay duties and taxes on your behalf when you ship the order marked as DDP and bill it back to you.
If you are a business-to-business (B2B) seller, and you collect the valid VAT number of merchants in the UK prior to shipping, you may not need to collect VAT on low-value orders. Contact Zonos to find out more.
Adding your UK tax ID in Dashboard
If you allow low-value orders to the UK (135 GBP or less), you will need to add your UK tax ID in Dashboard. To do this, go to Settings and then choose Tax IDs.
Next, under Tax IDs, select Edit next to the UK tax VAT number option shown above. This will return a pop-up dialogue (shown below).
Enter your UK tax ID number in the dialogue box shown in the image above. Finally, select Save and you're done.