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Written by Joseph Cox FCCA. Last checked: 6 November 2026.
A business based outside the UK has no VAT registration threshold. HMRC calls it a non-established taxable person (NETP), and it must register as soon as it makes a taxable sale in the UK, however small.
That applies to an Australian skincare brand, a US apparel company or a Chinese electronics seller alike. What changes from one business to the next is who collects the VAT on each sale: you, the marketplace or the customer at the border. This guide works through each route, with figures in pounds. For the wider picture, see our ecommerce VAT guide for non-UK businesses.
Who counts as a non-UK business
HMRC looks at where a business is run, not where it is incorporated. A business is established in the UK if its main management decisions and central administration happen here, or if it has a permanent UK presence with its own staff and equipment. VATREG37150 sets out the test.
Some things are not enough on their own to make a business UK established:
- A UK incorporated company
- A registered office, serviced office or virtual address
- Stock kept in a UK warehouse or fulfilment centre
So a UK limited company whose directors make the main decisions abroad, with only a registered office here, may be treated as an NETP. It then has no threshold either. If that describes your company, our accounting service covers UK companies run from abroad, VAT included.
Businesses based in the Isle of Man are the one exception. HMRC does not treat them as NETPs, so the normal £90,000 threshold applies.
Which rules apply to you
Most non-UK sellers use more than one route. Find each of yours below. B2C means selling to consumers, and B2B means selling to VAT-registered businesses.
| How you sell | Who deals with the VAT | Do you need to register? |
|---|---|---|
| Marketplace, stock already in the UK (B2C) | The marketplace, at checkout | Yes, but you can apply for exemption. Most register anyway |
| Marketplace, stock already in the UK (B2B) | You | Yes, once the marketplace gives you a business buyer's VAT number |
| Marketplace, parcel of £135 or less sent from abroad (B2C) | The marketplace, at checkout | No, for these sales |
| Your own website, stock already in the UK (B2C and B2B) | You, as for any UK sale | Yes |
| Your own website, parcel of £135 or less sent from abroad (B2C) | You, at checkout | Yes |
| Your own website, parcel of £135 or less sent from abroad (B2B) | The business customer, through the reverse charge | No, if these are your only UK sales |
| Any channel, parcel over £135 sent from abroad (B2C and B2B) | Whoever imports it, at the border | Not for these sales alone |
Selling through a marketplace from UK stock
Since 1 January 2021, marketplaces such as eBay, Amazon and Etsy collect the VAT on sales by non-UK sellers to UK consumers when the goods are already in the UK. The marketplace adds VAT at checkout and pays it to HMRC. You are paid without it. More on how this works: marketplaces and VAT.
The law still treats you as making a sale to the marketplace, which is zero-rated. That makes you liable to register, but HMRC lets you apply for exemption from registration because those sales carry no VAT (VATREG37210).
Most sellers register anyway, for three reasons:
- Marketplaces insist that non-UK sellers with UK stock provide a UK VAT number before they can sell on the platform. They can also remove sellers they believe should be registered.
- Registration is the only way to reclaim the import VAT on stock you bring in.
- Sales to VAT-registered business buyers are not covered. If a marketplace passes you a business customer's VAT details, you must register and charge UK VAT yourself (GOV.UK guidance).
An eBay seller from Canada storing stock with a UK warehouse is a typical case. eBay collects the VAT on its sales to consumers. The seller's own VAT return reclaims the import VAT and reports the zero-rated sales to eBay. See how we work with eBay sellers.
Selling through a marketplace from abroad
When goods are outside the UK at the point of sale and the parcel is worth £135 or less, the marketplace charges UK VAT at checkout and no import VAT is due. These sales do not count towards registration at all (VATREG37210).
This suits makers who post from home. An Etsy seller in the US sending prints to UK buyers in small parcels needs no UK VAT registration for those sales, because Etsy collects the VAT. See how we work with Etsy sellers.
Parcels over £135 fall under the normal import rules covered below.
Selling through your own store from abroad
Your own website carries the most VAT work. No marketplace sits in the middle, so the VAT is yours to charge on every UK sale.
The £135 limit applies to the whole consignment, not each item. It is the price the goods sold for, excluding shipping and insurance shown separately on the invoice (GOV.UK).
Parcels of £135 or less. You charge UK VAT at checkout, at 20% for most goods. That means registering for UK VAT before your first UK sale. A Shopify store needs its UK VAT number added and UK VAT switched on for UK orders. See how we work with Shopify brands.
Parcels over £135. No VAT is charged at checkout. Import VAT and any customs duty are due when the parcel enters the UK, and you decide who pays:
- You pay (delivered duty paid). Your carrier clears the parcel in your name and recharges you. The customer pays nothing at the door. Build the cost into your prices.
- The customer pays (delivered at place). The carrier collects VAT, duty and a handling fee before delivery. Some customers refuse the parcel, and you bear the return.
Watch the line at £135. A customer who adds one more item can push the order over the limit. Charge VAT at checkout on that order and the same parcel then faces import VAT at the border too, which means correcting your figures. Set your checkout to treat orders over £135 differently, or ship them in separate consignments where that makes sense.
Sales from stock already in the UK, such as a UK 3PL warehouse, are taxed like any UK sale. You charge VAT at checkout whatever the order value.
Bringing stock into the UK
Importing stock needs a GB EORI number, which you apply for on GOV.UK. Customs declarations cannot be made without one.
Once you are VAT registered, use postponed VAT accounting. Import VAT then goes in box 1 and box 4 of the same VAT return, instead of being paid at the border and reclaimed months later. Tell your freight forwarder to use it on every shipment. What is postponed VAT accounting? and importing stock.
Customs duty is separate from VAT and cannot be reclaimed, so it belongs in your cost of stock.
Worked example: an Australian brand selling two ways
Caitlin runs a skincare company in Melbourne. It is registered for UK VAT and sells into the UK through its own Shopify store and on eBay UK. In one quarter:
- Shopify, posted from Australia. 400 orders, all under £135. Customers pay £24,000 including VAT. The company owes £4,000 of UK VAT, one-sixth of £24,000 (box 1). The sales excluding VAT are £20,000 (box 6).
- Stock shipped to a UK warehouse. A shipment worth £20,000, including freight and duty (box 7). Import VAT of £4,000 goes through the return under postponed VAT accounting. It is declared (box 1) and reclaimed (box 4) on the same return, so nothing is paid at the border.
- eBay, from the UK warehouse. Customers pay £30,000. eBay keeps £5,000 of VAT and pays it to HMRC, so none of it goes on the company's return. The company reports £25,000 of zero-rated sales to eBay (box 6).
- Warehouse fees. £2,000 (box 7) plus £400 of UK VAT (box 4).
The same figures, box by box:
| Box | What goes in | Amount |
|---|---|---|
| 1 | VAT on Shopify sales £4,000, import VAT £4,000 | £8,000 |
| 4 | Import VAT £4,000, VAT on warehouse fees £400 | £4,400 |
| 5 | VAT to pay HMRC | £3,600 |
| 6 | Shopify sales £20,000, eBay sales £25,000 | £45,000 |
| 7 | Stock £20,000, warehouse fees £2,000 | £22,000 |
The company pays HMRC £3,600: the £4,000 of VAT on its Shopify sales less the £400 on its warehouse fees.
Registering and staying compliant
Registration is online. You register at your principal place of business, where orders are managed and the business is run, not at a mail forwarding or registered office address. You can use an agent, who needs an HMRC agent services account. Full details are on GOV.UK.
Once registered, returns are filed through Making Tax Digital software, normally every quarter. The return and payment are due one month and seven days after the quarter ends. Keep records for six years.
HMRC can direct an NETP to appoint a UK VAT representative or to pay a security deposit, for example after missed returns. We don't act as fiscal or VAT representative.
How we help
Our VAT service for non-UK businesses covers UK VAT and EORI registration, preparing and filing your UK VAT returns, help with HMRC compliance checks and ongoing advice. Book a discovery call to talk it through.
Frequently asked questions
Does the £90,000 VAT threshold apply to my business?
No. The threshold applies only to businesses established in the UK. A business based abroad must register from its first taxable UK sale, whatever the amount.
Do I need to register if I only sell on Amazon UK?
If your stock is in the UK, yes in most cases. Amazon collects VAT on your sales to consumers, but insists on a UK VAT number from non-UK sellers with UK stock. You also need one to reclaim import VAT. Amazon also checks where sellers are established: Amazon's UK VAT checks explained.
My company is registered in the UK but I live abroad. Is it an NETP?
It may be. HMRC looks at where the main decisions are made and the business is run. A registered office or virtual address in the UK does not count. See our accounting service for UK companies run from abroad.
Do I need a UK fiscal representative?
Not to register for VAT. HMRC can direct you to appoint one if returns or payments go wrong. Separately, the government plans to end customs duty relief on parcels of £135 or less by October 2028, and sellers without a UK presence will need a UK fiscal representative for the new duty arrangements (consultation response).
Can I reclaim UK import VAT?
Yes, once you are VAT registered and the goods are for your business. Use postponed VAT accounting so the VAT never leaves your bank.
What if I should have registered earlier?
You owe VAT on taxable UK sales from the date you should have been registered, even if you didn't charge it. Sales where a marketplace collected the VAT are not part of that bill. HMRC can add a penalty based on the VAT owed and how late you are, so register and tell HMRC as soon as you find the gap.
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