VAT for buy product from china


Hi everybody,

My UK-based company does not have a VAT registration yet. I buy products on alibaba and do fba. Is there anything I missed about VAT related to customs procedures?

Or am I doing it right by sending ddp the products I buy from China?


Do you live in UK?


Be aware with DDP products being sourced from Alibaba there are some scams out there where the seller will undervalue the goods on the customs declaration or even mark it as a gift in order to avoid paying any duty at all.

Unfortunately some sellers on Alibaba can not be trusted at all.


I am an authorized seller of a Chinese brand. I cannot terminate my cooperation with China. What do you suggest I do in this case?


Do you live in UK?


No i am not living in UK


In that case you should be VAT registered as a NETP


I don’t live in UK. I have a LTD company in the UK. Do I need to have a VAT registration to have products sent to fba warehouses from another country to the UK?


Yes you do


So far, I have sent products to amazon UK warehouses many times without my VAT registration. What will happen?


You’ll need to register, backdate it and pay vat owed and fines


Are you sure about this because my accountant didn’t say anything.



Perhaps you also need a new accountant…


The company opened in October and has had a turnover of about £36,000 so far. The punishment scared me according to what you said. Will I encounter a serious figure?


You were advertising in Sept 2021 ?!


Enough to contact HMRC today?

How many of these “Help, I don’t want to pay tax!” threads have there been lately?

It’s getting to the point where it really should be a ban on new seller accounts that aren’t a UK Ltd Company, with mandatory VAT registration.

It wouldn’t stop all of the problems, but at least it’d be more auditable.


Or an honest one?