Overseas orders over £135: who pays import VAT?
For goods sold directly from overseas to consumers in Great Britain, a consignment over £135 moves from the low-value checkout VAT arrangement to normal import VAT and customs rules. Confirm who will be named as importer and how the charges will be paid before dispatch. Ask Cambridge China Bridge to clarify the shipment arrangements.
Check which sale you are dealing with
This guide covers direct consumer sales with goods outside the UK when sold, delivered to England, Scotland or Wales. At £135 or less, the seller accounts for applicable VAT at the point of sale. Above £135, normal import VAT and customs rules apply. Exactly £135 remains within the lower-value category.
Ask where the stock is when the sale happens and whether a marketplace is involved. HMRC distinguishes marketplace sales, and Northern Ireland has different treatment. This guide does not cover excise goods or gifts. For the wider business model, see dropshipping versus bulk sourcing.
Test the consignment value, not each item
The threshold applies to the total imported consignment. HMRC uses the goods’ intrinsic value: their selling price excluding identifiable taxes and charges. Transport and insurance are excluded only when separately shown; costs included in the price without a separate invoice line remain included.
Ask the seller for an itemised invoice and confirmation of which goods will travel together. Add the values of goods in that consignment rather than testing each item separately. Do not use the checkout total without checking how freight, insurance and taxes are presented.
Identify the importer before agreeing the price
Crossing the threshold tells you which tax treatment applies; it does not identify the importer. Check whose name the customs entry will identify as importer. The delivery recipient and the broker submitting the declaration can be different parties. Our importer of record guide explains those roles and the separate conditions for recovering import VAT.
Ask the seller and clearance agent to confirm the proposed importer, who pays import VAT and any duty, and who receives the clearance documents. If the seller offers an inclusive delivered price, ask what it includes and whether the customer will receive a payment request before delivery. Keep the written answer with the order.
Reconcile checkout VAT after an order change
Adding goods to a consignment can take it above £135. HMRC says changes that cross the threshold may bring import VAT and Customs Duty into play and require an adjustment to VAT already accounted for at the point of sale.
Before dispatch, ask for a revised invoice and an explanation of any checkout VAT retained or adjusted. If a carrier later requests payment, compare its breakdown with the seller’s invoice and agreed delivery terms. Ask the seller to explain any apparent overlap. Use UK customs clearance for the wider clearance process.
Give the seller a clear dispatch instruction
Send the final goods list, delivery destination and agreed invoice to the seller and clearance agent. Ask them to confirm the consignment value, named importer, payment arrangements and documents to be supplied. Resolve conflicting answers before authorising dispatch.
Keep this consumer route separate from purchases by a UK VAT-registered business that supplies its VAT registration number: HMRC provides a different lower-value treatment for those purchases. For the broader import VAT calculation, see VAT on imports from China.
Frequently asked questions
Does an order of exactly £135 use import VAT rules?
Exactly £135 is within the lower-value category for the direct consumer sales covered here. Normal import treatment applies when the consignment value exceeds £135.
Does delivery count towards the £135 threshold?
Separately shown transport and insurance costs are excluded from intrinsic value. If included in the goods’ price without being shown separately on the invoice, they remain included.
Am I automatically the importer above £135?
The threshold alone does not identify the importer. Ask the seller and clearance agent whose name will appear as importer on the customs entry and who will pay the import charges.
What if I paid checkout VAT before adding more goods?
Ask for a revised invoice before dispatch. HMRC says changes taking the consignment above £135 may require adjustment of VAT already accounted for at the point of sale.