Sell on Amazon Sign in
This article applies to selling in: United Kingdom

UK VAT on eCommerce legislation

The UK is due to formally exit the EU’s single market and customs union (informally known as “Brexit”) on 1 January 2021. From this date, the UK is expected to introduce a new set of VAT rules, which may change the way that VAT is accounted for on your sales to UK customers.

What will change with the new VAT rules?

If you deliver goods to UK customers who are not registered for UK VAT:

  • From inventory stored outside of the UK:
    • The current VAT exemption for sales of goods under £15 will be removed. Your sales of goods will now be subject to UK VAT.
    • Amazon will be required to collect and remit UK VAT on these sales if the shipment value of these goods does not exceed £135.
    • If the shipment value exceeds £135, you will still have to remit VAT and any import duties yourself, as you are currently doing.
  • From inventory stored within the UK, if your place of establishment is outside of the UK, Amazon will be required to collect and remit UK VAT on these sales.

If you deliver goods to UK customers who are registered for UK VAT (B2B customers):

  • From inventory stored outside of the UK:
    • The current VAT exemption for sales of goods under £15 will be removed. Your sales of goods will now be subject to UK VAT.
    • Amazon will not be required to collect and remit UK VAT on these sales if the value of these goods does not exceed £135. Your B2B customer will self-calculate and remit this VAT through their UK VAT return.

The UK government is expected to publish the legislation for these changes during Q4 2020. We are here to help you prepare for these changes, and we will keep you updated on any changes to current expectations.

Who is impacted?

The new VAT rules in UK are expected to affect your business if you are either:

  • delivering goods to UK customers from outside of the UK, or
  • delivering goods to UK customers from inventory stored in the UK, who are not UK VAT registered, and your place of establishment is outside of the UK.

Sellers will still remain liable to meet their VAT registration obligations in the UK and account for any UK VAT due on sales, purchases, and importations outside of the above sales.

What can I do to prepare for the changes?

Please ensure that your Seller Central account details are up-to-date and that you continue to provide list prices that are inclusive of VAT for any marketplaces you list on. We will provide further information on what these changes mean for you and how to best prepare for these changes on this Help page as soon as further information is available.

Please also note that the above changes do not alter your VAT registration obligations. If you need help with VAT Registration and filing in the UK, Germany, France, Italy, Spain, Poland, and the Czech Republic, visit VAT Services on Amazon to sign up today.

Sign in to use the tool and get personalised help (desktop browser required). Sign in


Reach Hundreds of Millions of Customers

Start Selling on Amazon


© 1999-2020, Amazon.com, Inc. or its affiliates