Who should register for the UK import VAT on parcels service?

March 15, 2019

Sellers outside the UK should register to pay the UK import VAT on parcels if they:

  • are based outside the UK. This includes the EU, outside the EU, and the Channel Islands
  • intend to sell goods worth £135 or less to UK buyers after 29 March 2019
  • choose to pay the UK import VAT themselves and not to a parcel operation

Sellers must register for the service if they sell zero-rated goods. Zero-rated goods are still VAT-taxable but the rate of VAT charged is 0%. Sellers must still submit a report on these goods sold but with zero-rated UK import VAT due.

Sellers can check online to see if they will need to register with UK’s HM Revenue & Customs to pay the UK import VAT from 29 March 2019.

To calculate the total value of the parcel and decide who pays the import VAT, you should include the price paid for all items contained in the parcel, but not any postage, packaging or insurance costs. Postage, packing and insurance must however be included in the calculation of the tax due. You should not include for either purpose any duty you pay in your own country.