Ecommerce VAT for UK Sellers: The Complete Guide

Ecommerce VAT for UK Sellers

VAT is the area that catches ecommerce sellers out most: when to register, who collects it on marketplaces, how to handle import VAT, and the EU schemes for selling into Europe. This hub pulls together every GoEcom VAT guide so you can find the answer fast, then links to the full explainer.

Sources: HMRC VAT guidance on gov.uk, cited across the linked guides.

Charlie Bailey · Founder, GoEcom

Published 2026-05-29 · Updated 2026-05-29 · 3-min read

TL;DR

Register for UK VAT at £90,000 taxable turnover (rolling 12 months; raised from £85k in April 2024).
Marketplaces (Amazon, eBay, Etsy, TikTok) collect VAT in defined cases; Shopify never does (you are always responsible).
Import VAT is ~20% on value + duty + freight, use Postponed VAT Accounting to avoid paying cash at the border.
Selling to the EU? IOSS for sub-€150 imports, OSS for intra-EU sales from EU stock.
Full guides below, with the OSS/IOSS sub-cluster for EU sellers.

On this page

The VAT basics
UK VAT guides
EU VAT (selling into Europe)
FAQ

The VAT basics for ecommerce sellers

Three things drive most ecommerce VAT questions:

Registration. You must register for UK VAT once taxable turnover exceeds £90,000 in any rolling 12-month period (it rose from £85,000 in April 2024). This includes marketplace-handled sales.
Who collects it. On marketplaces, the platform sometimes collects VAT for you; on your own store (Shopify, WooCommerce) you always account for it yourself.
Imports and exports. Bringing stock in means import VAT (use PVA); selling to the EU means OSS/IOSS.

UK VAT guides

Registration, marketplace rules, import VAT and the FBA trap:

EU VAT: selling into Europe

The OSS/IOSS schemes and how UK sellers use them:

Getting VAT right across UK and EU is exactly what the matched accountants on GoEcom handle. If yours is getting complicated, get matched with a specialist.

Frequently asked

When does an ecommerce seller need to register for UK VAT?

When taxable turnover exceeds £90,000 in any rolling 12-month period (raised from £85,000 in April 2024), or when you expect to exceed it in the next 30 days alone. The threshold includes marketplace-handled sales. You can also register voluntarily below the threshold, which is common for importers who want to reclaim import VAT via Postponed VAT Accounting.

Who collects VAT on marketplace sales?

It depends on stock location and seller residency. A UK seller with UK stock charges and remits VAT themselves while the marketplace just processes payment; if goods are overseas at the point of sale, or the seller is non-UK with UK stock, the marketplace (Amazon, eBay, Etsy, TikTok) is the deemed supplier and collects the VAT. Shopify is never a marketplace under HMRC rules, so you are always VAT-responsible on Shopify sales.

How does import VAT work for ecommerce sellers?

Import VAT is usually 20%, charged on the customs value of the goods plus customs duty plus freight to the UK border. VAT-registered importers should use Postponed VAT Accounting to account for it on their VAT return (Box 1 and Box 4, which cancel out) instead of paying it in cash at the border. Non-VAT-registered importers pay it and cannot reclaim it.

Do UK sellers need OSS or IOSS to sell to the EU?

Only in specific cases. IOSS lets you charge EU VAT at checkout on consignments of 150 euros or less shipped from the UK to EU consumers; OSS covers intra-EU distance sales from stock you hold inside the EU. UK businesses access both via an EU intermediary. If you only sell to the EU via marketplaces such as Amazon or Etsy, the marketplace's own registration usually handles it.

Ecommerce VAT for UK Sellers

The VAT basics for ecommerce sellers

UK VAT guides

UK VAT for Ecommerce Sellers

How to Register for UK VAT

Marketplace VAT UK

Postponed VAT Accounting (PVA)

Import VAT UK

Amazon FBA Stock Movements

EU VAT: selling into Europe

OSS & IOSS for UK Sellers

IOSS Number

IOSS Intermediary

IOSS Threshold (150 euro)

IOSS vs OSS

Etsy IOSS

Related guides