Direct sale of goods within the UK
Based on the nature of the transactions, the responsibilities are the following
The merchant is selling goods directly to consumers and the goods are already in the UK at the time of sale. This transaction is subject to UK VAT and the merchant is responsible for charging UK VAT at the time of supply. This applies to all sales of goods within the UK regardless of their value. The merchant has to register for VAT in the UK, file VAT returns and pay VAT to the tax authorities.
* Please note that special rules apply for sales to business customers, sales to Northern Ireland, sales of goods subject to excise duties and gifts.
*While our tutorial brings clarity to complex rules, it is not tax advice. There are many exceptions to these rules and the legislation is constantly changing therefore always speak with your trusted tax expert. If you need practical assistance with your VAT obligations we will be happy to help you.