Selling on your own website
Selling on your own website is an excellent way to build your unique brand and expand your business to reach new customers. We’ve helped thousands of online businesses stay compliant while selling cross-border.
Top VAT tips for selling on your own website
- 1
Review your supply chain for VAT liabilities
You may trigger a VAT obligation at certain points of your supply chain. Being aware of these is essential to selling on your own website compliantly, so ensure you review each step of your process.
- 2
Keep track of EU VAT rates to apply to orders
When selling on your own website to EU customers, VAT will need to be charged based on their location. Across the EU Standard VAT rates can vary from 17-27% so being aware of these and altering your pricing accordingly is key.
- 3
Check if your online business could benefit from OSS/IOSS
The OSS and IOSS schemes have been created to simplify cross-border VAT for sellers in the EU. Running your own website can be complex at times so consider whether OSS or IOSS may make your VAT obligations more manageable.
Take our EU VAT Quiz to find out if you’re eligible.
What are your VAT obligations?
If you are selling on your own website, then it’s important you’re aware of your VAT obligations. Your obligations can vary depending on whether you’re selling into the UK, within the UK, into the EU or within the EU.
Selling into the UK
Goods outside the UK at Point of Sale (Non-UK businesses)
When selling through your own website to customers in the UK with a consignment value of under £135, you will need to be VAT registered from your first sale. All sales with a consignment value of less than £135 will be subject to VAT at the point of sale.
If the consignment value is over £135, you can choose who the importer of record for the sale is: yourself, or the customer. If you are the importer of record then you must be VAT registered, charge VAT at the point of sale, pay import VAT and reclaim it on your VAT return.
As a seller, you must charge the UK VAT rate applicable to your products on all sales made to UK customers.
Selling within the UK
Goods inside the UK at Point of Sale (Non-UK Businesses)
If you have goods within the UK to sell onwards to customers, you have created a taxable supply and must be VAT registered. You must charge VAT on all sales made to UK customers. Any import VAT paid can be reclaimed on your VAT return (excluding those businesses that are under the Flat Rate Scheme).
As a seller, you must charge the UK VAT rate applicable to your products on all sales made to UK customers.
Selling into the EU
Goods outside the EU at Point of Sale
For goods based outside the EU at point of sale below €150, you will be eligible to report these sales through the Import One Stop Shop (IOSS) scheme. The IOSS scheme is aimed at simplifying VAT compliance and importation of low value goods. IOSS allows you to report these sales on a single monthly VAT return and expedite customs processes.
For goods above €150, you need to VAT register at the country of importation and charge VAT at the customer’s local rate.
Selling within the EU
Goods within the EU at Point of Sale
If your goods are based within the EU at the Point of Sale, you will be eligible to register for the One Stop Shop (OSS) scheme in the country in which your stock is held. Through OSS you can report all your intra-EU distance sales in a single quarterly return.
You will need to hold a local VAT registration in each of the countries you hold stock in.
You should always be charging the local VAT rate applicable to where your customer is based. Unless you have not crossed the EU-wide Distance Selling Threshold of €10,000. This is inclusive of all intra-EU sales.
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