United KingdomManual

The UK has a standard VAT rate and one reduced VAT rate. In addition, a number of items are zero rated

UK Distance sales. VAT on e-commerce

You can find more information about the EU wide VAT regime on distance sales in our article about this topic in our website.

These are some of the rules applicable in UK regarding this regime:

  • The distance sales threshold is £70,000. Where the total amounts of sales to UK customers in any 12-month period exceeds this threshold, a registration is required
  • Foreign companies may opt to register in UK before the threshold is exceeded.  UK companies may opt to register abroad if the threshold is not exceeded, this option is mandatory for 2 years once the application is sent
  • When a foreign e-commerce business registers in UK, a compliant VAT invoice must be issued for each UK client. It is however allowed to issue a "simplified invoice" which requires fewer details
  • Intrastat returns are due when the Intrastat threshold is exceeded.
  • VAT returns must report the sales as domestic sales only. Distance sales are not reported as intra-Community acquisitions followed by local sales
  • If goods are returned by the client, an intra-Community supply is not reported in UK
  • An ECSL return is never due on distance sales

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