Goods Sold in UK from another country.

Hi, I will be selling goods online(Duvets) from Pakistan to United Kingdom(I am not a resident of UK). At the time of purchase, the customer's money will be collected in a UK PayPal account. The money will then be sent to the home country to buy the goods and to ship them off to the location. Keeping this in mind: Q) Is the VAT on duvets 20%? Q) Am i exempt from VAT? Q) If I have to pay VAT, do I have to pay any other taxes except VAT and Income Tax(filed through Self-Assessment Tax Return)? Q) How do I label the shipping and buying of the duvets as business expenses? Thank You.

Hi,

If you export goods from overseas to consumers in the UK and the value of the goods are over £135, then the goods will go through an import procedure in the UK.

If you are the importer of record then you will be making a supply of goods in the UK and will be required to register for VAT.

If you are not the importer and the customer is responsible for paying the import VAT in the UK, then there will be no requirement to register for VAT in the UK as you will not be making a supply here.

Who should register for VAT (VAT Notice 700/1)

If the goods are below £135 then there will be a requirement for you to register for VAT.

Changes to VAT treatment of overseas goods sold to customers from 1 January 2021

Thank you.