VAT Guide for UK and EU eCommerce Sellers
Published: 2026-06-20
Everything UK and EU sellers need to know about VAT for cross-border eCommerce sales.
What is VAT?
Value Added Tax (VAT) is a consumption tax applied to goods and services in the UK and EU. As an eCommerce seller, you may need to register for VAT depending on your sales volume and where you sell.
VAT Registration Thresholds
In the UK, the VAT registration threshold is £90,000 in annual taxable turnover. EU thresholds vary by country. If you sell to EU customers via marketplaces, marketplace facilitator rules may apply.
Calculating VAT
VAT is typically calculated as a percentage of your selling price. Standard UK VAT rate is 20%. Use our VAT Calculator for quick calculations.
IOSS and OSS Schemes
For EU distance sales, the Import One-Stop Shop (IOSS) and One-Stop Shop (OSS) schemes simplify VAT compliance for sellers shipping from outside the EU.
Conclusion
VAT compliance is critical for cross-border sellers. Stay informed and use our free tools to calculate VAT accurately.