Marketplace VAT and low-value consignments

Identify the transaction first

For relevant overseas goods sold into Great Britain, the £135 rules concern the consignment, not each individual product. The treatment also depends on where the goods are when sold, the sales channel and the customer. This is not a general “VAT-free” threshold.

Why the threshold is not the whole answer

Avoid one rule applied to every online order. Separate an overseas direct sale from a marketplace sale and from stock already in the UK. Northern Ireland and excise goods require different consideration.

Facts to gather

• Location of the goods at the point of sale.
• Seller location and who is facilitating the sale.
• Consignment composition and intrinsic value.
• Customer VAT status and supporting information.
• Evidence of tax charged or accounted for by the marketplace.

Work through the VAT position

Map the physical goods movement and the sale as two related records. Read the applicable HMRC guidance for the actual channel. Record who accounts for VAT and how the carrier receives the information. In the profit calculator, enter your confirmed sales and import VAT assumptions; the selected marketplace name does not determine them.

Worked scenario

Common mix-ups

• Treating £135 as an allowance deducted from a larger value.
• Assuming a marketplace always accounts for every tax.
• Applying Great Britain guidance to a Northern Ireland movement without checking.
• Ignoring the point-of-sale location of stock.

What to verify

Confirm intrinsic value, business-customer exceptions, excluded goods and who must account for VAT. These rules are not implemented as automatic threshold decisions in current. Review the official guidance each time a route or sales model changes.