Following the UK’s withdrawal from the EU, there will be new requirements for NON-UK E-commerce businesses with sales to British consumers.

From 1 January 2021, the VAT liability will be transferred from the time of import to the time of sale (point of sale) for all consignments with a value of less than £ 135.

This means that if you have online sales of goods with a value of less than £ 135 to British consumers, it will be mandatory for NON-UK E-commerce businesses to:

  • Register for VAT in the UK
  • Charge UK VAT of 20% at the time of the sale
  • Secure import of goods at UK border and DDP delivery


Import of goods
The threshold value of £ 15 will be abolished completely from 1 January and therefore all goods will have to be cleared through customs on arrival at the British border (customs declarations are still required for non-fiscal purposes). If the consignment value is below £ 135, the consignment will be duty free.

For consignments with a value of less than £ 135, the import VAT will no longer be collected at the border when customs clearance is done.


How is the value of £ 135 calculated?
The threshold value of £ 135 is based on what we call “the intrinsic value of the goods”. This means the value of the item at the time of sale without VAT, transport and insurance as well as other costs and fees.

The new rules do not apply to companies selling excise goods.