What is the UK VAT rate for online sales?

Standard rate is 20%. Reduced rates of 5% apply to some categories (children car seats, home energy). Zero-rated categories include most food, children’s clothing, and books.

Import One-Stop Shop — EU scheme allowing non-EU sellers to charge and remit EU VAT on imports up to €150 in one consolidated registration rather than per-country.

Does the marketplace collect VAT for me?

For UK and EU low-value imports, yes — marketplaces are deemed supplier and collect VAT. For domestic sales where the seller is VAT-registered, the seller collects and remits.

When do I need to register for UK VAT?

Mandatory registration at £90,000 taxable turnover (threshold from 1 April 2024). Voluntary registration below that threshold is possible and sometimes advantageous.

E-Commerce VAT in the UK and EU: A Seller's 2026 Guide

UK VAT on most goods is 20%. EU VAT ranges from 17% (Luxembourg) to 27% (Hungary). Non-EU sellers shipping to the EU can use IOSS (Import One-Stop Shop) for single registration up to €150 per order, or pay country-by-country above that. Marketplaces like GeraMarket collect VAT on qualifying cross-border sales, shifting the compliance burden away from individual sellers. This guide explains what applies to you.

What are the UK VAT rates?

Standard rate: 20% on most goods and services
Reduced rate: 5% on home energy, children's car seats, mobility aids for elderly
Zero-rate: most food (not restaurant meals), children's clothing and shoes, books (incl. e-books since 2020), newspapers
Exempt: financial services, education, healthcare — not the same as zero-rated

When must I register for UK VAT?

Compulsory registration at £90,000 taxable turnover in any rolling 12-month period (threshold increased from £85,000 on 1 April 2024). Voluntary registration below that can be advantageous if: you sell to other VAT-registered businesses who can reclaim; you import supplies you want to reclaim VAT on; you want the professionalism signal of a VAT number on your invoices.

UK imports: who collects VAT?

Since 1 January 2021 (post-Brexit):

Orders under £135: marketplace collects UK VAT at point of sale. Seller receives net of VAT.
Orders over £135: VAT and duty collected by customs at the border. Buyer typically pays on delivery unless seller uses DDP.

EU VAT: what's IOSS?

IOSS (Import One-Stop Shop), introduced 1 July 2021, lets non-EU sellers register in one EU member state and handle all EU VAT via a single return, up to €150 per order. Without IOSS, each package above €22 (the old low-value threshold, now abolished) goes through customs and the buyer pays VAT + clearance fees on delivery — a terrible customer experience.

On GeraMarket, IOSS registration is handled by the platform for cross-border EU orders. You list and ship; we charge correct EU VAT at checkout and remit.

What are standard EU VAT rates by country (2026)?

Hungary: 27%
Croatia, Denmark, Sweden: 25%
Finland: 24%
Ireland, Poland, Portugal, Greece: 23%
Italy, Slovenia: 22%
Belgium, Czechia, Latvia, Lithuania, Netherlands, Spain: 21%
Austria, Bulgaria, Estonia, France, Slovakia: 20%
Cyprus, Germany, Romania: 19%
Malta: 18%
Luxembourg: 17% (lowest in EU)

What records should I keep?

Invoice per sale with VAT rate and amount
Customer country and VAT status (B2B buyers with valid VAT numbers can be zero-rated intra-EU under reverse-charge)
Evidence of shipment (tracking, carrier invoice)
Input VAT on supplies (your own purchases)
Quarterly VAT returns filed via HMRC Making Tax Digital (UK) or national portal (EU)
Retain records for 6 years (UK) or 10 years (EU, varies by country)

What about Brexit changes?

Since 1 January 2021, UK is outside the EU VAT area. EU sellers shipping to the UK deal with UK VAT separately, and UK sellers shipping to EU use IOSS or country-by-country registration. Northern Ireland follows hybrid rules (EU VAT for goods, UK VAT for services). GeraMarket handles the Brexit split automatically.

How does GeraMarket simplify VAT?

GeraMarket is registered for UK VAT and operates IOSS for EU cross-border. For orders under the relevant thresholds, we collect and remit VAT, giving you a net settlement. For orders above, we generate the commercial invoice so the buyer or customs handles the rest. You see your VAT liability and transaction history in the seller dashboard.