Domestic freight to the UK for sale? Cross-border sellers should pay attention to the new VAT regulations starting in 2021!

If you sell goods on e-commerce platforms such as Amazon, the platform will pay the tax, so the seller does not need to declare VAT himself?

This is for sellers whose single consignment does not exceed 135 pounds .

If British overseas sellers sell their goods through the UK Amazon platform , then in the B2C case, the Amazon platform will be obliged to declare VAT for these goods.

If a UK overseas seller sells on his own instead of through the Amazon platform, then the seller needs to register for UK VAT and then declare VAT to the UK tax authorities himself .

What is a "single consignment"?

A single consignment refers to the total value of a single shipment of goods shipped to the UK by an overseas seller in the UK during the import and export sales process.

In fact, this regulation is aimed at those "small packages".

For overseas sellers whose single consignment value exceeds 135 pounds , the declaration obligation has not changed fundamentally from before, and they still need to pay import VAT instead of output tax.

The "135-pound limit" in the above new policy mainly applies to some small packages .

For local British companies that are currently registered for VAT and import goods from outside the UK, the new VAT policy is actually beneficial to the company's cash flow; because they no longer need to pay import VAT when entering the customs.