vat rules uk

Selling Products Through Social Channels In The UK? Learn VAT Rules With Us!

uk vat rules

Do you know how important it is to learn The VAT Rules UK if you are into an online selling business? Several businessmen with no knowledge of VAT rules pay huge amounts and regret later. This post will guide you to avoid regretting the future. 

In case you fail to understand VAT Rules UK or unable to convince yourself about its importance, the chances are high to pay unexpected bills and cause damage to your own business. 

Online businesses that offer their products through social channels must determine the place of supply to clarify the country and its rules to be followed for VAT. In the UK there are three major categories that are listed below:

  • EU Businesses that offer products through social channels in the UK.
  • Products selling in the UK through non-EU businesses
  • Product selling at the UK point of sale

uk vat refund rules


 For professional advice on VAT planning, reach out to Accotax instantly!


EU Business through Social Channels in the UK:

In case the products you aim to sell are available at the sale point in the UK. Also when EU business is not fixed, it will be required to get registered for VAT from the very first day of business. The question that arises here is what exactly defines EU Business? The EU stands for European Union. The UK is part of the European Market which makes it eligible to trade in fourteen countries that are included in the market list without any trading hurdles. There is a free trade agreement signed between the UK and EU in December 2020 as well. 

If the products are available in any other country of the EU outside of the UK at the time of sale then it will be registered as UK distance sales. When the sales hit 70K pounds and exceed this figure, it will be a must to register for the UK VAT and charge it on all the sales.   


Non EU Business:

In this scenario the products are outside the EU countries at the time of sale and it is required to import the products to the UK to meet the criteria of VAT Rules UK. When the business is not in the UK (neither fixed nor business establishment), there will be an automatic need for registration. 

Moreover, if the customer takes the responsibility to import those products to the UK, such cases don’t require to meet UK VAT obligations for the business. 

Do you seek help for the completion of your VAT Returns? Accotax offers an instant solution to your problem, contact now!


Product Selling at Point of Sale UK:

The simplest and straightforward situation in which the products are in the UK and they are sold to the customers in the UK. In such cases VAT Registration is only required when the limit exceeds and VAT is charged on the products selling at the point of sale.   

Let’s suppose your business is already VAT registered and you are selling your products to EU customers, the treatment with VAT Rules UK will depend if your customers are registered or not. The customers that are non-registered will be charged VAT as per usual practice. Distance selling requires EU VAT registration too but they will be charged EU. 


Other VAT Rules for Online Business:

While you are selling your products online, it is a must to understand what is included for turnover for VAT. Especially, distance selling rules need to be under great focus. Another major focus are online markets like Amazon can come in to jointly held and be liable for the revenues for other online seller’s VAT. You will be asked to provide certain information if they see the need for you to be registered for VAT. 

If you fail to provide your VAT Registration number, they might doubt you as an online seller and you will be blocked and hence unable to continue with your selling in the market. 

If you would like us to protect you from being stuck in any such trouble. Feel free to contact us!



To sum up the discussion, we can say that VAT Rules UK holds solid ground in the world of online selling through social channels. Whether you aim to work through Amazon or any other famous online market, the importance of VAT remains the same. One just can’t simply find an escape to avoid the rules. The rules may vary depending on distance selling or selling products within the UK. Certain terms and conditions are mentioned for dealing with the EU Country list as well. So, if you intend to grow your business, you must learn a vivid understanding of VAT and be mentally convinced to follow the right direction as well. I hope this post helps to add more to your VAT knowledge while you work as an online seller in the UK. 

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