- Collect 20% VAT on all low-value orders
(total of goods <= £135) - Register for a VAT number with HMRC
- Remit the collected VAT quarterly to HMRC
Face penalties and fines if you are not prepared
Find out moreNew UK VAT scheme
Zonos has you covered!
Jan 1, 2021, all businesses selling goods into the UK are required to:
How Zonos can help
How do I get started?
Check out resources, contact us or read FAQ below.
UK VAT resources
Read
Docs: How Zonos products help you with UK VATBlog: Learn all about the new UK VAT scheme
Dashboard settings: Set up your store for UK VAT
Download
One Sheet: Print or share this informational PDFWatch
Webinar: UK VAT webinar for a better understanding
UK VAT FAQ
Get answers to the most commonly asked questions.
Is the £135 threshold for the price of the goods only, or for the whole invoice including shipping and insurance?
The £135 threshold is for the price of goods only. However, for cart totals below £135, VAT is charged on goods, duty, shipping, and insurance.
Can I just ship DDU and let my carrier collect the VAT instead of my business doing it?
Unfortunately, no. Carriers are unable to collect VAT for any shipment where the total of goods is <= £135. You will have to collect and remit directly to HMRC or have Zonos do it for you.
Can I collect and remit VAT on all orders, including those above £135, so I don’t have to keep track?
No, any shipment where the total of goods is > £135 has to have VAT and duty paid upon import. Our Dashboard reporting makes it easy to keep track of which orders you need to remit on.
If I am shipping B2B to my distributors or retailers do I still need to collect VAT on low-value orders?
Yes, unless they provide you with their VAT number, which will shift the responsibility to them. You will need to include their VAT number on your sales invoice.
What if I’m selling on a marketplace? Do you remit to the marketplace (Amazon, eBay, Etsy, etc.), to the shipping company, or do I need to remit on my own?
If you only sell from a marketplace and do not sell into the UK on any other platform, the marketplace is responsible for VAT collection and remittance.
Do VAT and duty need to be collected at the time of sale for UK orders that are shipped DDU?
Yes, regardless of the shipping method, duty and VAT will need to be collected on all low-value orders at the time of sale and remitted to HMRC quarterly.