Businesses selling goods in this value bracket will need to manage the following variables:
The answer to each question will drive the VAT treatment. Multiple VAT treatments are possible, and accounting and sales system coding will need to be reviewed by both overseas vendors and OMPs. It may be possible to simplify matters by varying the sales agreement used between the overseas vendor and marketplace as well as the overall sales model. It is important to remember that Great Britain and Northern Ireland will operate under different rules, even though they are both part of the UK. The rules below apply to GB (England, Scotland and Wales). Trading with NI will require review of separate rules.
It is worth noting that the £15 low value consignment relief rule has now been removed.
In general, import VAT will no longer be collected at import, but rather sales VAT on the sale of the goods will be collected, where the consignments of goods are valued at £135 or below. That said, in order to enter the UK consignments not exceeding £135 will still require customs declarations, though these may be less detailed.
VAT Assistant Manager