What issues should online sellers pay attention to when selling products to UK customers?

Do they need to pay VAT when selling internationally?

What are the things to check for running an online store?

As the trade continues to grow, many people intend to run their own stores on platforms such as Amazon, eBay, etc.

For your reference, we have listed the questions that online sellers need to consider before selling their first item.

How to find out if you are an overseas seller?


Overseas sellers need to meet:

  • No business establishment in the UK (commercial establishment requires the business to have a permanent entity and have management decision-making capacity)
  • Selling Taxable Goods to UK Customers

If your online store has only one fulfillment center or branch team in the UK, then you are an overseas seller.

customs declaration

Should online overseas sellers register and pay VAT?

VAT depends on your individual circumstances.

This depends on whether you are selling directly to UK customers or online, the location of your products and points of sale, and the selling price.

If your business is based in the UK and sells locally, or outside the UK and sells to UK customers, you will need to pay tax on most items.

If you are an overseas seller and make any taxable sales in the UK, you will need to register for VAT and pay the tax.

Taxable sale: Any transaction in the UK that is not exempt from VAT.

Non-compliant overseas sellers


If you are operating an online store overseas and must register for VAT, you will be subject to penalties if you do not pay the correct tax as required.

Usually, HMRC will send a notification to the user and the specific amount, and if the payment is not received within 30 days, further interest will be charged.

Interest will be accrued for up to two years.

You can also file an appeal and fight for your own interests if you find any errors in the process.

If you still do not comply, HMRC will contact the trading platform and inform that the platform has the right to remove abnormal merchants.

In order to ensure the smooth operation of every overseas seller, we strongly recommend that you comply with the UK VAT requirements.

We are a partner of Amazon VAT, contact us and you will get fast quotation and service.


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