B2C imports below £135 into the UK — who accounts for VAT and how it works post-Brexit

On 1 January 2021, the United Kingdom fundamentally changed the rules for collecting VAT on B2C imports from abroad. The reform, which took effect alongside Brexit, introduced a mechanism known as "VAT on imported goods" — a model under which VAT is collected at the point of sale rather than at the point where a consignment crosses the border. This change has significant consequences for Polish businesses selling to individual consumers (B2C) in Great Britain — whether through their own online shops or through marketplace platforms such as Amazon, eBay or Etsy. The key threshold is £135 — the value of a single consignment that determines who is responsible for charging and accounting for VAT, and how customs clearance in the UK works. Below we explain this logic step by step, breaking it down into direct-sales and marketplace scenarios.

Why £135 is the critical threshold in UK VAT

Before Brexit, when the United Kingdom was part of the EU, a de minimis threshold of £15 applied to retail imports (B2C) from outside the EU — consignments below that value were exempt from import VAT. Brexit removed that threshold and replaced it with an entirely new framework:

Consignment value	Where VAT is charged	Who accounts for VAT
Below £135	At the point of sale	Seller or marketplace
Above £135	At import (UK border)	Importer / buyer

The £135 threshold applies to the intrinsic value of the whole consignment (not of individual items). Intrinsic value is the price the goods were sold for, excluding transport and insurance costs (unless they are included in the price and not shown separately on the invoice) and any other identifiable taxes and charges.

Source: gov.uk — VAT and overseas goods sold to customers in Great Britain using an online marketplace

How VAT works on consignments below £135 — a step-by-step guide

For parcels below £135, the rule is: VAT is charged and collected from the customer at the point of purchase, by the seller or the marketplace platform. The mechanism works as follows:

1. A UK customer buys a product for £80 from a Polish online shop
2. The seller (or the marketplace, if the sale is made through a platform) charges UK VAT (20% standard rate for most goods) — the price to the customer becomes £96
3. UK VAT is collected from the customer at the point of purchase
4. The seller / marketplace remits UK VAT directly to HMRC
5. The parcel entering the UK as a consignment below £135 may be exempt from import VAT (because VAT was already paid at the point of sale)
6. In Great Britain, non-excise goods worth £135 or less attract no Customs Duty; excise goods are subject to Customs Duty regardless of value (above £135 duty depends on the HS code and, for EU-origin goods, TCA rules)

Important: IOSS (Import One-Stop Shop) is an EU scheme for sales into the EU and is not used for sales into Great Britain. For consignments of £135 or less, the seller or online marketplace charges UK VAT at the point of sale and accounts for it on its UK VAT Return instead of at the border; the seller's or marketplace's UK VAT registration number is used for this. These rules do not apply to consignments containing excise goods or to non-commercial goods such as gifts.

How this affects customs clearance — practical considerations

For B2C parcels below £135 into the UK:

Simplified customs declaration (Low Value Consignment) Parcels below £135 may be covered by a simplified customs declaration procedure — without a full Entry Summary Declaration for each individual consignment. Couriers and postal operators typically handle this automatically.

Duty vs. VAT — an important distinction - Customs Duty: in Great Britain, non-excise goods worth £135 or less attract no Customs Duty. Excise goods are subject to Customs Duty regardless of value. Northern Ireland has separate rules. - Above £135, duty depends on the HS code; goods originating in the EU (e.g. Poland) may qualify for a 0% rate under the TCA if the origin requirements are met.

Proof of VAT payment — what the parcel must include The parcel should contain on the label or in the customs system: - The goods value below £135 intrinsic value - Confirmation that VAT was collected at the point of sale - The UK VAT registration number of the seller or marketplace - A description of the goods consistent with the HS code

How marketplaces charge VAT — Amazon, eBay, Etsy

For sellers using marketplace platforms, the situation is simpler because the platform takes on the obligation to charge and remit VAT — but this has its own implications:

Amazon UK (non-UK seller): - Amazon is treated as the "deemed supplier" for UK VAT purposes - Amazon charges UK VAT at platform level for consignments below £135 - The seller does not need to register for UK VAT solely because of sales below £135 (but must register if holding stock in the UK — e.g. FBA) - The customer's receipt shows the price with VAT collected by Amazon

eBay UK (non-UK seller): - Since 2021, eBay accounts for UK VAT on behalf of non-UK sellers for consignments below £135 - eBay Managed Payments automatically charges VAT and pays it to HMRC - The seller receives the net amount (excluding VAT)

Etsy: - Etsy charges and remits UK VAT for consignments below £135 from non-UK sellers since 2021

Direct-to-Consumer sales (own online shop): Without a platform intermediary, the seller must independently register for UK VAT and account for it. UK VAT registration is available through gov.uk — physical presence in the UK is not required.

What changes for Polish online shops selling to the UK

Polish e-commerce businesses selling to customers in the UK must take into account the following obligations:

Direct sales (own online shop): - Consignments of £135 or less to consumers in Great Britain: mandatory UK VAT registration regardless of sales value (no registration threshold for this; sellers selling only to UK VAT-registered businesses do not need to register on this basis) - Obligation to charge UK VAT (20% on most goods) at the point of sale - Quarterly VAT returns in the UK plus payments to HMRC - Cost of UK VAT registration and compliance: typically £200–£500 per year for small shops (UK accountant)

Sales through a marketplace: - UK VAT is remitted by the platform — the seller does not need to register for UK VAT solely on this basis - However: if the seller uses FBA (Fulfilment by Amazon) and stores goods in the UK → UK VAT registration is required, because goods are sold from UK territory

Documentation: - Every B2C sale to the UK below £135 should be recorded in the UK VAT register (or included in the marketplace platform's VAT return) - The seller should retain records for at least 6 years (HMRC requirement)

Consignments above £135 — a different framework

For consignments above £135 (intrinsic value), the point-of-sale VAT rule does not apply: - Import VAT is charged at the UK border - The import VAT payer is the importer (buyer or seller, depending on the Incoterms) - A full customs declaration is required (C88 or its equivalent in CDS) - Customs duty is charged in the normal way according to the HS code and UK Global Tariff rates