Non-UK seller: how do £135, marketplace sales and UK stock change VAT?
Updated 2026-07-13
For a non-UK seller, £135 is not a universal VAT threshold. The answer turns on the channel, where the goods are when sold, and whether the consignment fits the low-value import rules.
Unsure if these rules apply to you?
First identify where the goods are at the time of sale
For direct B2C sales of standard goods that are outside the UK when sold and in consignments with an intrinsic value of £135 or less, HMRC says the seller charges UK VAT at the point of sale and registers for VAT.
For direct consignments above £135, do not reuse that point-of-sale conclusion. Import VAT and customs treatment follow the normal import path, subject to the facts of the shipment.
Then separate direct sales from marketplace sales
A qualifying online marketplace may account for VAT on specified sales by an overseas seller, including low-value imports and certain consumer sales of goods already in the UK. That marketplace treatment is tied to the transaction through that marketplace.
An order placed through your DTC store is not automatically covered because the same product also appears on a marketplace. Record the channel for every order before deciding who must charge and account for VAT at checkout.
Stock already in Great Britain is a different branch
If an overseas seller directly sells goods that are already in Great Britain at the time of sale, HMRC's registration guidance should be reviewed separately from the £135 low-value import rule. The goods did not enter through that sale as an import.
This page assumes ordinary B2C goods in Great Britain. It does not resolve B2B sales to VAT-registered customers, excise goods, zero-rated or exempt goods, Northern Ireland, or EU arrangements. Check those facts before relying on a VAT outcome.
Primary sources
This page is grounded in the primary materials below. Rules change, so open the source and confirm the current version before acting.
FAQ
Is £135 a UK VAT registration threshold?+
No. It is part of a point-of-sale VAT rule for specified low-value imports. The applicable treatment still depends on the sales channel, where goods are when sold and other facts.
Does an online marketplace always handle UK VAT?+
Only for transactions that meet the marketplace rules. Confirm the channel, customer type, location of goods and transaction type against HMRC's current guidance.
What if goods are already in Great Britain?+
The low-value import analysis is not the same once goods are already in Great Britain. Overseas sellers should review registration and charging duties under the rules for goods located in the UK at the time of sale.
Continue checking
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