Cross-border selling · Who charges VAT at checkout
UK VAT and the £135 line
For consignments up to £135, the seller charges VAT at the point of sale. Above £135, import VAT is collected at the border.
Key facts
| Threshold | The total consignment value of £135 |
|---|---|
| At or below £135 | The seller charges and accounts for VAT at the point of sale when selling directly to the customer |
| Above £135 | Import VAT is due at the border, usually collected from the importer or recipient |
| Marketplace sales | Deemed-supplier rules can move the VAT obligation to the platform |
| B2B with a VAT number | The business customer accounts for VAT due under the reverse-charge rules |
| Official source | GOV.UK, VAT and overseas goods sold directly to customers in the UK |
The £135 line decides who charges VAT
The threshold applies to the total consignment, not to each item. Below it, a direct seller charges VAT at checkout and accounts for it; above it, the parcel enters the import VAT process at the border. A marketplace can be the deemed supplier for below-threshold sales, which changes who charges the customer.
The practical failure is a price display that does not match the route. A customer who pays a VAT-inclusive price and is then asked for VAT at delivery will refuse the parcel or open a dispute, and the seller pays for both.
Price display must match the rule
Decide the route per sales channel before setting the price. On a marketplace that collects VAT, the listed price usually includes it. On your own store, you either register and charge VAT at checkout or sell VAT-exclusive and let the border collect it. The customer-facing number must be the same one the checkout and the carrier expect.
For B2B orders, collect the customer's VAT number and use the reverse-charge treatment where it applies. A missing or invalid number can move the liability back to you.
Frequently asked questions
Is the £135 threshold per item or per consignment?
It applies to the total value of the consignment. A multi-item parcel is assessed on the total, not on each item separately.
Who charges VAT on a marketplace sale?
Deemed-supplier rules can make the marketplace responsible for charging and accounting for VAT on below-threshold sales. Check the specific marketplace and sale structure.
What happens above £135?
Import VAT is due at the border. The carrier or importer usually handles the collection, and a handling fee may apply.
Do I need a UK VAT number?
If you sell directly to UK customers and are responsible for charging VAT, you need to register. Marketplace deemed-supplier sales can change the obligation; confirm your position with a tax adviser.
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