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The new EU VAT scheme has begun. How are you handling it?Click here

New UK VAT scheme

Zonos has you covered!

Jan 1, 2021, all businesses selling goods into the UK are required to:
  • 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 more

How Zonos can help

  • Current Zonos customers - it's easy!

    To collect and track UK VAT on low-value orders, just turn it on in Zonos Dashboard!*

    Then:

    - register for a VAT number and remit

    or

    - have Zonos register & remit for you:

    *Alternatively, you may turn off low-value orders, but we recommend leaving them enabled


  •   

  • Not a Zonos customer yet?

    Zonos Landed Cost products* can easily handle UK VAT calculations and collection for you!

    Zonos Landed Cost products:

    *APIs and plugins available
    *Use your own carrier


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 VAT
Blog: 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 PDF

Watch

Webinar: UK VAT webinar for a better understanding
I need more info
I need more info

Contact Sales to learn more about Zonos Landed Cost options.

Click here
Already a customer, contact support
Already a customer?

Have questions about UK VAT? Contact Customer Success.

Click here
Get your API Key here
Partners

Contact Business Development to learn more about partnership options.

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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.