VAT on China parcels to Northern Ireland
For direct sales of China parcels worth £135 or less, Great Britain uses supply VAT at sale; Northern Ireland uses import VAT. The seller normally accounts for it, but a business buyer providing a valid UK VAT number takes responsibility. Confirm the route before dispatch with Cambridge China Bridge.
Start with the delivery address
Use the final customer's delivery address, rather than the billing address, to identify a Northern Ireland sale. This guide covers direct sales with goods in China when sold. HMRC distinguishes supply VAT for qualifying low-value consignments to Great Britain from import VAT for those to Northern Ireland.
Keep the tax question separate from your stock strategy. Our dropshipping or bulk sourcing guide covers that choice. If your destination is the Republic of Ireland, use our China-to-Ireland sourcing guide.
Check the whole consignment value
The £135 limit applies to the whole consignment, rather than each item. Use the goods' selling price, excluding separately shown transport and insurance and other identifiable taxes and charges. Transport or insurance included in the price without being separately shown stays in the value.
Above £135, normal import VAT and customs rules apply. The low-value rules described here exclude consignments containing excise goods and non-commercial gifts. Ask the seller for the packing plan and invoice before deciding which route applies.
Identify who accounts for VAT
For a qualifying direct sale to a consumer in Northern Ireland, the seller accounts for import VAT on its UK VAT return instead of at the border. A business buyer that is not VAT registered, or does not provide a valid UK VAT number at purchase, is treated as a consumer for this purpose.
Where a business buyer provides its valid UK VAT number, the buyer accounts for the VAT. In Great Britain this uses the reverse charge. In Northern Ireland it is import VAT: HMRC's direct-sales guidance allows postponed VAT accounting or another means of paying import VAT. Recovery remains subject to normal VAT recovery rules.
Agree the accounting route before dispatch
If the Northern Ireland business buyer chooses postponed VAT accounting, arrange for it to be selected on the import declaration. HMRC says the accounting method cannot be changed after that declaration is submitted. Ask your customs agent to confirm the buyer's details and intended treatment before filing.
For eligible consumer sales, a seller registered for the Import One Stop Shop scheme can use that scheme's return. Confirm whether it applies to this shipment. Otherwise, use the direct-sales route above. Our import VAT payment guide helps you agree the shipment arrangements.
Match the order, invoice and shipping instructions
Prepare a written instruction showing the seller, final delivery address, buyer's VAT status, consignment contents and value, and who will account for VAT. Ask the seller and customs agent to confirm that their documents describe the same transaction.
Send Cambridge China Bridge the order and packing plan so our staff in China can coordinate the factory paperwork with your agreed shipping instructions. Ask your accountant to confirm the VAT treatment before dispatch, particularly if the goods are being combined or the recipient changes.
Frequently asked questions
Is VAT the same for China parcels to Belfast and London?
For qualifying direct-sale consignments worth £135 or less, London uses supply VAT at sale; Belfast uses import VAT. Who accounts for it also depends on whether the buyer supplies a valid UK VAT number.
Does the £135 limit apply to each item?
No. It applies to the total consignment. Add together the values of goods shipped together, using HMRC's intrinsic-value method.
Can a Northern Ireland business use postponed VAT accounting?
A VAT-registered business buyer providing its valid UK VAT number can use postponed VAT accounting for these imports. Arrange the declaration treatment before submission; this is import VAT accounting.
What if my business has no VAT number?
For these low-value Northern Ireland sales, a business without VAT registration, or without a valid UK VAT number supplied at purchase, is treated as a consumer. The direct seller accounts for VAT.
Sources
- HMRC: VAT and overseas goods sold directly to customers in the UK
- HMRC: Charging VAT on goods sold direct to customers in the UK
- HMRC: VAT on goods imported into Northern Ireland
- HMRC: Check when you can account for import VAT on your VAT Return
- HMRC: Check if you can register for the VAT Import One Stop Shop scheme