I currently do the following:
- sell my own necklaces
- dropship jewellery racks
- import my packaging from China (privately through a friend)
The UK scrapped the Low Value Consignment Relief (LVCR) from New Years Day 2021 where goods under £15 could be imported tax-free and goods between £15 and £135 attract only Import VAT but no customs duty.
I've since read a lot about what it means for an OMP (Online Marketplace like Amazon), but there is not much valuable information for me as a seller with my own website.
It says that sellers selling goods up to the value of £135 directly to consumers via their own websites, will be liable to register an account for UK VAT. Especially now that delivery agents will no longer be able to collect the Import VAT from the consumer and that domestic VAT will be due instead.
My turnover has not reached the VAT threshold yet (£85k), so I'm not VAT registered.
My questions are:
- Will I need to start charging VAT on my website? If not, when do I need to start?
- If ALL GOODS (regardless of value) are taxed when sent from abroad, but not collected by customs, how can I get my packaging sent to me?
- What will I need to do before selling to the EU? Will I need an EORI?