International Selling Hub

What is domestic VAT and when is it charged?

UK businesses must be VAT-registered if they have a VAT-taxable turnover of more than £73,000 per year. However, this threshold differs by country. Also, VAT rates vary per country and some goods are exempt from VAT. Goods exported outside of the EU are generally VAT exempt .

It’s important to keep evidence (such as a certificate of postage from your carrier, or a departure message from HM Revenue & Customs’ electronic export system) that your goods have been sent from the UK. The evidence must be sufficient to identify your goods and show that they left the UK. If not, the sale will not be eligible to be zero-rated as an export, and will be liable to UK VAT.

This is frequently referred to as Customs Duty, Excise Duty or Import VAT and is calculated based on origination of product, product type and the tax regulations of the country/region the product is imported to. There’s more information about customs and import tax in our postage section.

Goods can move without customs paperwork within the EU, but a declaration is required if you’re exporting outside of the EU.

There’s no import tax when moving goods between EU countries, but please be aware that each country has specific regulations on prohibited goods.

Export tax is a levy charged on the export of a product. When we last updated this page, there were no export taxes, duties or levies in force on goods being exported within/from the EU (source: HMRC guide to importing/exporting).

There are certain goods that you are not allowed to export/import in person or by post, and these vary from country to country .


Note: The above information may change and you should regularly check official sources to ensure that you have the most up-to-date information. Also, the above information can in no way be construed as legal advice.