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Home > United Kingdom Value Added Tax
Information regarding United Kingdom Value Added Tax

The United Kingdom (England, Wales, Scotland and Northern Ireland) now requires internationally based vendors to register with the Her Majesty's Revenue and Customs (HMRC) and to collect Value Added Tax (VAT). This requirement came into effect on January 1st 2021, and is part of the new regulations surrounding BREXIT. There is no exemption offered to small businesses with low annual sales to the U.K.


It would appear that orders valued at £135 or more before postage are exempt from the seller having to collect VAT. This does not mean that HMRC doesn't want their VAT - they do, but I will not have to collect it. It is orders under £135 before postage and insurance that the seller (i.e. AHS) must, effective Jan 1st 2021, register for and collect 20% VAT, then file quarterly VAT returns with HMRC.

The workload impact is simply not worth the time I will have to spend complying with these regulations.

However, I am willing to work within and around the regulations.... so the good news is that I will accept orders from the U.K. that are $200 or more, before shipping (£135 at current exchange rate is $184, so rounding up to allow for currency exchange fluctuations).

The bad news is that my estore has no ability to enforce a minimum order only to customers in certain countries. I can set a store wide minimum, but not by country.

To draw attention to this, the shipping countries for the UK have been changed to “BREXIT – ENGLAND”, “BREXIT – NORTHERN IRELAND”, “BREXIT – SCOTLAND” and “BREXIT – WALES”. No worries, I manually create shipping labels, “BREXIT” will not appear on them!

Finally, and obviously, orders from customers in the U.K. and under $200 will be cancelled, and I will communicate with the customer via email explaining the issue.

Thanks !