Hi,
When considering the value of goods for the purposes of importing these goods in to the UK then it is exclusive of VAT.
The guidance states:
The starting point for determining whether a sale of goods located outside of the UK, made to a UK consumer, is subject to UK supply VAT under this measure is to consider whether the selling price of the goods exceeds £135, exclusive of VAT. For this purpose, the value should be based on the ‘intrinsic value’ of the goods, which equates to the price at which the goods are sold, excluding:
- transport and insurance costs, unless they are included in the price and not separately indicated on the invoice
- any other taxes and charges identifiable by the customs authorities from any relevant documents
It is important to bear in mind that the £135 threshold applies to the value of the consignment, not to each individual item within the consignment.
To determine the correct VAT treatment you will need to know whether the goods are to be packaged and sent singularly to the customer or as part of a consignment with other goods.
If the latter applies then it is the overall value of the consignment that must be considered, and if this is over £135 then normal VAT and customs rules will apply, meaning that import VAT will be chargeable and so supply VAT should not be charged at the point of sale. You can see guidance here:
Changes to VAT treatment of overseas goods sold to customers from 1 January 2021
Thank you.
