Non UK sole trader selling goods from outside UK to the UK via UK online marketplace

Hello If there is a situation where - Non UK based seller, residing in Germany (not VAT registered anywhere; neither in UK or neither in Germany) - Purchasing goods from German companies, paid German VAT on products, and stored the product in Germany - Most goods valued at above 150 GBP - Non UK based seller lists product for sale on UK marketplace (e.g. EBAY UK) - UK buyer purchases product - Seller ships product to UK buyer from EU (outside UK) to the UK In this case - Does Ebay collect any VAT on the sale or nothing at all? - When the product enters the UK I assume the customer is liable to pay import VAT and duties. - Are there any taxes that the seller needs to pay HMRC or none at all given that the customer should pay import VAT when the product enters the UK?

Hi newuser123,
There are particular rules where an overseas seller supplies goods to consumers in the UK under a value of £135.
In this case the responsibility is with the overseas seller to account for the VAT and where a marketplace facilitates the sale then it becomes the resoonsibility of the marketplace.
However, where the goods have a value of over £135 then import VAT will become due at the border.
The marketplace will not be responsible for the payment of VAT and this would normally be paid by the importer of the goods.
Therefore there will be no responsibilities for the seller of the goods in terms of VAT and duty.
There would only be a difference if you are the named importer of the goods as well as the exporter of the goods, in which case you would then be making a sale of those goods in the UK and so there would be a requirement to register for VAT in the UK and account for the VAT on the sale in the UK.
 

Thanks. Is there any income tax to be paid on profits for the non UK sole trader to the UK government? Or taxes on profits should only be paid to the German government since that is where the sole trader resides?

Hi,
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Thank you.