As of January 1, 2021, Her Majesty’s Revenue and Customs (HMRC) is collecting on goods sold to buyers in the UK from overseas. Consignments valued at £135 or under require overseas sellers to charge UK VAT at checkout and remit the collected VAT to HMRC.

For more detailed information, please read here.

A summary of changes can be found below:

  • All consignments into the UK not exceeding £135 moved to this new VAT collection model. 
  • Sellers, both retailers and marketplaces, are responsible for collecting and accounting for UK VAT charged to UK buyers. 
  • Sellers that fall under these requirements are required to register for VAT in the UK and submit UK VAT returns. 
  • The low-value consignment relief, which allows items valued under £15 to be imported duty and tax-free, have been be abolished. 
  • While no VAT are payable at the customs border, customs declarations are still required. 
  • Sellers are required to provide buyers with a UK VAT invoice. 
  • Consignments above £135 remain are subject to existing customs rules and processes. 
  • Sellers are required to keep electronic records of their sales for 6 years. They are also required to produce these records on request from HMRC. 

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