Commentary

1003 Import VAT on parcels you sell to UK buyers

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

1003 Import VAT on parcels you sell to UK buyers

Part V8 HMRC Notices | Commentary

1003
Import VAT on parcels you sell to UK buyers

February 2019

If you are based outside the UK and sell parcels to UK buyers worth £135 or less, you must pay import VAT. Parcels include letters, packages, packets and any other article that could be sent by post, even if they are sent by different methods.

To pay import VAT you can either:

  1.  

    •     register with HM Revenue and Customs (HMRC) to report and pay the import VAT due yourself

  2.  

    •     pay a parcel operator that offers a service to pay import VAT to HMRC on your behalf

Who should register

You can register to pay import VAT if you:

  1.  

    •     are based outside the UK – this includes the EU, outside of the EU and the Channel Islands

  2.  

    •     intend to sell goods worth £135 or less (not including shipping, insurance and incidental costs) to UK buyers after Brexit

  3.  

    •     choose to pay the import VAT yourself and not to a parcel operator

You can register with HMRC before you need to start paying import VAT on parcels.

HMRC may refuse to register you if we have evidence that you have not met registration rules.

If you do not register with HMRC or pay import VAT to a parcel operator, you may find:

  1.  

    •     your parcels are delayed or stopped from entering the UK

  2.  

    •     the UK buyer may have to pay additional tax and fees

  3.  

    •     you have to pay a penalty of £1,000

You must still register if you sell zero-rated goods. Zero-rated goods are

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