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Knowledge base

UK VAT on sales: import VAT, PVA and the 135 GBP threshold

When UK VAT registration is needed, how postponed VAT accounting (PVA) works and what the 135 GBP threshold for lower-value consignments means.

On sales into the United Kingdom, tax treatment depends on consignment value and the sales model. For consignments not exceeding GBP 135 the tax is normally charged at the point of sale rather than at the border. Above that threshold import VAT arises, which UK-registered businesses can account for on their return instead of paying at clearance.

PVA (Postponed VAT Accounting) lets an importer declare import VAT on the VAT return and recover it on the same return, instead of paying cash at clearance. The effect is cash-flow neutrality for a business registered for VAT in the United Kingdom.

Three questions that organise the subject

  • What is the consignment worth? The GBP 135 threshold separates two entirely different mechanisms.
  • Who is the customer? A sale to a VAT-registered business looks different from a sale to a consumer.
  • Who is the importer? That follows from the delivery terms, not from who pays the freight.

Below the threshold: tax at the point of sale

For lower-value consignments the British system moves the tax point to the moment of sale. In practice the seller or the marketplace charges the customer and accounts for the tax in the UK, which usually requires UK VAT registration. For a Polish online seller that is normally the first real barrier to the British market, felt far more keenly than the logistics itself. The e-commerce model is discussed in e-commerce transport to the UK.

Above the threshold: import VAT

At higher values the consignment goes through ordinary import clearance, and tax is calculated on the customs value plus duty and transport costs. A business registered for VAT in the UK can account for it on the return rather than paying at the border. The mechanism is detailed in postponed VAT accounting. What matters is that the import declaration correctly signals that treatment, because correcting it afterwards is awkward.

Sales model and delivery terms

If you sell on terms where you handle the import, you become the importer in the United Kingdom with everything that entails: you need a British identification number and usually a tax registration too. If the receiver is the importer, the obligations sit with them. That distinction is settled in the contract, not in a conversation with the carrier; we unpack it in DDP versus DAP and in who pays duty and VAT on imports from Poland.

Marketplaces change the arrangement

When selling through large platforms, part of the tax obligation shifts to the platform operator, in a scope depending on consignment value and seller status. That does not remove customs obligations or responsibility for describing the goods correctly. The differences between consumer and business sales are covered in B2C and B2B customs differences.

What it means for the transport

The tax treatment shapes the import declaration and the data that has to appear on the invoice. A missing identification number or unclear delivery terms can hold a consignment at the declaration stage, before the crossing is even reached. So on a first shipment we ask for the tax information together with the order, not afterwards. The full running order of steps is in UK customs clearance after Brexit.

Sources

This is general information, not tax advice; confirm the detail with an adviser or HMRC. Want transport and clearance in one order? Write through the quote form. Our customs scope is on the customs clearance page.

Frequently asked questions

What does the 135 GBP threshold mean when selling to the United Kingdom?
For consignments valued up to 135 GBP, VAT is usually collected at the point of sale, by the seller, rather than at the border: which often requires UK VAT registration. Above that figure import VAT usually arises and is accounted for at clearance.
What is postponed VAT accounting (PVA)?
It is a mechanism that lets businesses registered for VAT in the United Kingdom account for import VAT on their VAT return instead of paying it in cash at the border. It improves cash flow for regular imports into the UK.
Do I need UK VAT registration when selling DDP to the UK?
Selling on a DDP basis usually brings VAT obligations in the United Kingdom, and for consignments up to 135 GBP VAT is often collected at the point of sale, which also requires registration. Marketplaces may take over part of the accounting: confirm the details with an adviser or HMRC.

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