Selling to UK consumers from overseas: the £135 VAT rule and when you must register (2026)

DTC sales at £135 or less

HMRC's direct-sales guidance says consignments of £135 or less sold directly to UK customers from overseas have UK VAT charged at the point of sale. Review this treatment first for orders placed through your DTC store.

That same HMRC guidance also carves out B2B cases where the UK customer gives you a VAT number. This page is focused on consumer sales, so do not use it as a shortcut for B2B treatment.

When the marketplace handles the VAT instead

HMRC's marketplace guidance says the online marketplace is the deemed supplier for relevant overseas sales, including consignments of £135 or less and goods already in the UK sold by an overseas seller through the marketplace. In those cases, the marketplace accounts for the VAT.

Do not combine marketplace sales and direct DTC sales to UK customers. The sales channel affects who must charge and account for VAT.

Stock in the UK removes the threshold question

GOV.UK says overseas businesses must register regardless of turnover if they supply any goods or services to the UK. HMRC's NETP manual also says a business without UK establishment is liable if it makes taxable supplies of any value in the UK, subject to specific carve-outs such as reverse-charge situations.

So once you hold stock in the UK and make direct taxable supplies from there, this is no longer a £90,000-threshold story. It becomes a first-sale review.

Situations requiring separate review

For direct sales above £135, HMRC's direct-sales guidance says normal VAT and customs rules apply on importation instead. DDP terms, B2B reverse charge, zero-rated goods, Northern Ireland cases, and marketplace seller-of-record terms require separate review.

Before registering or changing checkout tax settings, prepare UK inventory records, marketplace and DTC sales, order values, customer type and import terms for a VAT professional to review.

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