If you sell products to customers in the United Kingdom, you may need to collect and remit VAT (Value Added Tax) to comply with UK import requirements.
This guide is intended to provide general information only. UK tax and import requirements can change, and it is your responsibility to verify current requirements with HMRC and other relevant UK authorities. SellerDash does not provide tax or legal advice.
Overview
When goods are shipped from outside the UK to a UK customer, VAT will generally apply and Customs Duty may also apply depending on the value of the shipment and the product being imported.
SellerDash helps you generate shipping labels and customs documentation, but merchants remain responsible for ensuring their tax settings and product information are accurate.
Shopify Setup
If you sell to UK customers, ensure that:
UK tax collection is enabled in Shopify.
Product tax settings are configured correctly.
VAT is included or displayed according to the UK import requirements.
Consult your tax advisor or Shopify's tax settings documentation if you're unsure how UK VAT applies to your business.
Orders Valued at £135 or Less
For goods sold directly to UK consumers with a total value of £135 or less, UK VAT must be collected at the point of sale.
This means:
The customer should be charged UK VAT during checkout.
The seller is responsible for registering for a UK VAT number (where required), and for reporting and remitting the VAT to HMRC.
The seller's VAT number should be included in the shipment data provided to the carrier and customs documentation where required.
Customs Duty is generally not charged on these low value shipments.
Adding your VAT ID in SellerDash
For applicable orders, you can add your VAT ID number in the Import Reference field in the Order Option section when an order is expanded.
Orders Valued Over £135
For shipments with a value greater than £135:
The seller must not collect VAT from the customer at checkout.
Import VAT is calculated when the goods enter the UK.
Customs Duty may apply depending on the product type, value, and country of origin.
The carrier may contact the recipient to collect any applicable taxes and duties before delivery.
In all cases, accurate customs declarations are essential. Missing or inaccurate customs information can result in:
Delivery delays
Additional fees
Returned shipments
Customs holds or inspections
Required Customs Information
When shipping internationally through SellerDash, make sure your products include:
Accurate product descriptions
Correct item values
Country of origin
Accurate Harmonized System (HS) codes
Individual item weight and quantity information
UK customs authorities use this information to determine any taxes, duties, or import restrictions that may apply.
Best Practices for UK Shipments
To help ensure successful deliveries:
Keep product descriptions clear and specific.
Add and maintain product weights directly in your store.
Use accurate product values.
Maintain current HS/commodity codes.
Verify your Shopify tax settings for UK sales.
Inform customers that import taxes and duties may apply on orders over £135.
Additional Resources
For the latest UK import tax and customs requirements, refer to the official UK Government guidance:
Tax and customs for goods sent from abroad
Import goods into the UK: step by step
UK Trade Tariff lookup service
UK import requirements can change, so we recommend reviewing official guidance regularly.