Sales to the UK through your own online store cause many doubts regarding the VAT settlement of sales made to contractors from UK. Depending on the value of the transaction, the sales channel and the recipients status, the VAT settlement method may be different.

Sales to the UK through your own online store cause many doubts regarding the VAT settlement of sales made to contractors from UK. Depending on the value of the transaction, the sales channel and the recipients status, the VAT settlement method may be different.

Sale to the UK through your own online store – VAT for sales

If you sell through your own online store, you may be required to register VAT in Great Britain, regardless of the turnover. From January 1, 2021, the limits of the so-called mail order sale. Therefore, each sale that is subject to taxation in Poland results in the obligation to register for VAT and submit declarations in the UK. When is the transaction subject to UK VAT? First of all, you need to establish the status of the buyer. If the buyer is a UK VAT taxpayer – there is no need to register for UK VAT. If the customer is a consumer (private person), you should determine the value of the transaction. You are required to settle transactions with a value of £ 135 or less on your UK VAT return. Transactions with a value exceeding £ 135 are exports of goods – VAT is settled by the buyer (importer) – so in principle you are not required to register for VAT in the UK.

Selling goods to a customer in the UK using sales portals

From January 1, 2021, the UK government imposed additional obligations on companies operating sales platforms (such as Allegro or Amazon, Shopee). The purpose of these changes was to improve the collection of VAT from foreign sellers. If you sell in the UK via online market places (OMP), in most cases VAT will be collected and transferred to the tax office by OMP. In particular, OMP is required to settle VAT for shipments from outside the UK with a value not exceeding 135 GBP.

£ 135 limit for shipments to UK customers

There is often a reference to the £ 135 limit in VAT reporting on sales to the UK. Generally, however, it is in vain to look for information on how such a limit should be calculated. As explained on the website of the UK Ministry of Finance, the limit of £ 135 should be calculated according to the following rules:

  • The value of the transaction should be interpreted as the price payable by the customer (market value)
  • If the customer purchases several products – the value of the transaction should be specified for the entire order
  • The value of the transaction does not include transport costs and other additional fees (including customs duties)

The £ 135 limit is important for shipping goods to Great Britain from Poland or another European Union.

EORI number – what is this?

The EORI number is nothing more than the number under which a given company is identified in the system for handling customs declarations. Our EORI number is built on the basis of a VAT number, and in order for the number to be active, it is necessary to report it to the appropriate customs authority. The EORI number will be necessary to export goods from the territory of the European Union or import goods from the territory of third countries (e.g. China).

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