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.