---
name: gb-vat-eu-goods-sellers
description: "UK VAT workflow for EU sellers shipping goods to Great Britain: consignment valuation, direct versus marketplace sales, UK stock, business customers, registration and returns."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/gb-vat-eu-goods-sellers"
  jurisdiction: "GB"
  tax_year: "2026"
  last_updated: "2026-10-16"
  authored_by: "Michael Cutajar and the OpenAccountants team"
  trust_label: "Built by Michael Cutajar and the OpenAccountants team"
  review_status: "pending_review"
---

# EU sellers sending goods to Great Britain: VAT decision workflow

If your business sells goods from the EU to customers in Great Britain, who accounts for UK VAT depends on where the goods are when sold, who buys them and whether a marketplace handles the sale. The table below helps you identify your route before you set prices, configure checkout or prepare your VAT return. [HMRC direct sales](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk), [HMRC marketplace sales](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces).

For tax year 2026, this skill covers calendar-year sales by EU businesses not established in the UK to customers in England, Scotland and Wales. Northern Ireland, services, excise goods, gifts and special import arrangements need separate guidance. Your dispatch country's export treatment also needs its own assessment. A UK VAT number or warehouse address alone does not establish where your business is based for VAT. [HMRC scope](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk)

Sources checked on 4 October 2026. Check again if the rules or your sales arrangements change.

## Before you start

Identify the sales you want to assess:

- Are the goods outside the UK or already in a UK warehouse when sold?
- Are you selling directly or through a marketplace that accounts for VAT?
- Is the buyer a consumer or a business supplying a valid UK VAT number, and is delivery to Great Britain?

Different channels and stock locations can produce different answers for the same business. Work through each below; the supporting records you need are explained with the relevant decision.

## What to do

1. Separate Great Britain from Northern Ireland

Check the delivery address on the order. Northern Ireland follows different rules, so a UK country code alone is not enough to choose this Great Britain route. [HMRC territorial distinctions](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk)

2. Decide whether the channel is a qualifying online marketplace

Do not treat a payment processor or a hosted web shop as automatically responsible for VAT. HMRC's marketplace test requires involvement in supply terms, payment authorisation/facilitation and ordering or delivery. Payment processing alone, advertising/listing alone, or simple redirection alone is excluded. Check your marketplace agreement and tax reports: they should show whether the platform takes responsibility for the sale under these rules. [HMRC marketplace definition](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces)

3. Locate the goods at sale and choose the route

Use your order and warehouse records to establish where the goods were when sold and who owned them. For a business customer, check the UK VAT number supplied for that sale; a company name or an EU VAT number is insufficient.

| Facts established | UK VAT route to investigate and record |
|---|---|
| Goods outside the UK; direct consumer sale; consignment intrinsic value no more than £135 | Seller accounts for supply VAT at sale and must address UK VAT registration. |
| Same goods/value, but sold through a qualifying marketplace to a consumer | Marketplace accounts for the VAT under the overseas-goods rules. Obtain its tax evidence. |
| Goods outside the UK; qualifying low-value sale to a customer that supplies its UK VAT number | Check the number and the B2B conditions; the Great Britain customer accounts under the reverse charge. |
| Goods outside the UK; consignment exceeds £135 | Ordinary import VAT/customs route. Establish the importer and onward supply treatment before assigning liability or recovery. |
| Goods already in Great Britain; overseas seller sells directly | Seller registration and domestic supply VAT apply regardless of consignment value, subject to the separately assessed zero-rated-registration exemption. |
| Goods already in Great Britain; qualifying marketplace consumer sale by a seller not established in the UK | Marketplace accounts for the customer sale; the seller makes a deemed zero-rated supply to it. Import obligations remain a separate question. |
| Goods already in Great Britain; marketplace customer supplies its UK VAT number | Seller accounts for the sale and must address registration. Do not apply the imported-low-value B2B reverse charge to UK stock. |

Sources: [direct sales](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk), [marketplace sales](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces).

4. Calculate the consignment threshold correctly

The £135 test concerns the total intrinsic value of the imported consignment, rather than each item. Add items sent together. Exclude separately identified transport/insurance and identifiable taxes; transport/insurance embedded in the price and not separately shown remains included. A changed order that crosses the boundary must be reassessed before dispatch, including any VAT already charged. [HMRC valuation rules](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk)

Use the order invoice and parcel records to calculate the value of everything sent together, including discounts. Keep the threshold calculation separate from the amount on which VAT is charged. Excluding a separately shown delivery charge from intrinsic value does not itself exclude that charge from the VAT base. Determine the supply's consideration and ancillary-charge treatment under the ordinary VAT rules. For a foreign-currency order, retain the conversion method, rate and date; do not improvise a conversion solely to fit below the boundary. Resolve uncertain valuation with the customs/VAT adviser. [HMRC VAT Notice 700, consideration and value of supply](https://www.gov.uk/guidance/vat-guide-notice-700)

5. Establish registration and recovery separately

Do not apply the ordinary domestic £90,000 threshold to a non-established seller's taxable UK supplies. An exemption from registration for a non-established taxable person requires all its taxable supplies to be zero-rated and an application to HMRC; record the decision rather than assuming an exemption. For the direct imported-goods model, HMRC states that sellers do not have to register if they only sell goods outside the UK at the point of sale to UK VAT-registered businesses. Confirm the complete sales population meets that exclusion; domestic UK stock or consumer sales need separate analysis. [HMRC B2B-only exclusion](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk) [HMRC registration rules](https://www.gov.uk/register-for-vat)

A seller making only deemed zero-rated supplies through a marketplace may register or apply for exemption. The overseas seller remains liable for import VAT/customs when it imports stock; marketplace collection on the eventual retail sale does not settle that import. Before importing, agree who will be the importer with your carrier or customs agent. Check the delivery terms, goods ownership and customs declaration. To recover import VAT, you must meet the normal conditions and hold the appropriate import-VAT evidence; a marketplace statement or carrier payment alone is insufficient. [HMRC marketplace stock rules](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces), [HMRC input-tax and import evidence rules](https://www.gov.uk/guidance/vat-guide-notice-700)

6. Determine the rate, post and reconcile

Classify the product before selecting the rate. The standard rate is 20%, but reduced or zero rates may apply to particular goods; obtain the relevant product guidance before using an exception. [HMRC VAT rates](https://www.gov.uk/vat-rates)

Keep sales where you account for VAT separate from marketplace-accounted sales, deemed supplies, qualifying B2B reverse-charge sales and ordinary imports. This makes the return easier to reconcile. Compare gross orders with tax reports, refunds, fees, payments and stock movements: a platform's net payout is not your taxable sales total.

Assign the correct return period using the applicable tax-point rules. Prepare a return mapping only after the transaction classification is complete; use the UK VAT-return Skill and current return instructions for actual boxes and deadlines. Retain the decision, source version and evidence beside the transaction. For direct overseas sales, HMRC requires full VAT records for six years. [HMRC tax points and accounting](https://www.gov.uk/guidance/vat-guide-notice-700), [direct-sale record retention](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk)

## Linked figures

| Figure | Applicability | Official source |
|---|---|---|
| £135 | Inclusive consignment intrinsic-value boundary for qualifying low-value goods | [HMRC direct-sales guidance](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk) |
| £90,000 | Ordinary domestic registration threshold, not a NETP relief | [HMRC registration](https://www.gov.uk/register-for-vat) |
| 20% | Standard VAT rate; first classify the product | [HMRC rates](https://www.gov.uk/vat-rates) |

## Worked examples and boundary checks

These are hypothetical decision checks, manually reasoned against the cited guidance; they are not client filings or professional sign-off. Numeric sales prices below are assumptions. Illustrative VAT arithmetic rounds only the final result to two decimal places.

### Direct sale below the boundary

A Netherlands-established seller has no UK establishment. It sends an ordinary standard-rated product from the Netherlands directly to a consumer in England. The merchandise is £100 excluding VAT; delivery is free; no marketplace is involved. Intrinsic value is £100. With the product's standard-rate classification confirmed, VAT is £100 × 20 / 100 = £20 and the customer total is £120. The seller-accounted low-value route applies. [HMRC direct-sale rule](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk), [standard rate](https://www.gov.uk/vat-rates)

### Aggregate the parcel, then compare

Two items each priced at £70 excluding tax travel in the same consignment; delivery is free. Intrinsic value is £140. The low-value checkout route does not apply merely because each item is below £135. Identify the importer and apply the ordinary import workflow. An otherwise eligible consignment with intrinsic value exactly £135 remains on the low-value side. [HMRC consignment boundary](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk)

### Similar customer, different stock location

A UK VAT-registered customer supplies a valid UK VAT number. If its qualifying low-value parcel is outside the UK at sale, test the imported-goods B2B reverse charge. If the same seller's goods are already in Great Britain and the sale is through a marketplace, the seller accounts for UK VAT instead. Preserve stock-location evidence: the two outcomes cannot be selected by looking only at the customer. [HMRC direct B2B rules](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk), [UK-stock marketplace B2B rules](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces)

### Payment processor only

The seller controls its own shop; the third party only processes payment. Do not assign the seller's VAT to that provider. Document the marketplace definition and continue through the direct-sales route. [HMRC marketplace exclusions](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces)

### Returned order

The original supplier charged UK VAT and subsequently refunds it when the goods are returned. Adjust that supplier's VAT return for the refunded VAT. If the seller did not originally charge the VAT, do not create a seller output-tax reversal merely because cash was refunded; reconcile the responsible marketplace's adjustment. Replacements with a changed value require an adjustment assessment. [HMRC returned-goods guidance](https://www.gov.uk/guidance/vat-and-overseas-goods-sent-to-the-uk-and-returned-to-the-seller)

## When to get advice

If any of the points below is unresolved, have a VAT adviser confirm the treatment before filing or changing your checkout:

- Your business's UK establishment status, the marketplace's role, the importer, the consignment value or the product's VAT rate is unclear. These facts determine liability, registration and recovery.
- You have Northern Ireland movements, excise goods, mixed or bundled supplies, special customs procedures, gifts or earlier returns to correct.
- You intend to rely on a registration exclusion but cannot show that all relevant sales qualify.

Keep the conclusion with the records supporting it. Where the sale crosses two tax systems, confirm both the UK treatment and the dispatch country's export treatment.

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> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
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## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-16. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `gb-vat-eu-goods-sellers` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/gb-vat-eu-goods-sellers. If neither is available, confirm every figure against the official source pages cited above before relying on it.