Why overseas brands start with the UK
For most US and international brands, the UK is the natural first step into Europe: a large, English-language market with familiar buying behaviour and no localisation to fund on day one. It also works as a base to reach EU customers without running a warehouse in every country. The catch is that the compliance layer is unfamiliar — and getting it in the wrong order is what stalls launches.
The £135 consignment rule, and how marketplaces fit in
For goods sold to UK consumers in consignments valued at £135 or less and located outside the UK at the point of sale:
- Sold directly (your own store), the overseas seller charges and accounts for UK VAT at the point of sale.
- Sold through an online marketplace, the marketplace is liable to account for that VAT.
The £135 figure is the value of the whole consignment, not each item. Above £135, normal import VAT and duty apply at the border instead. Note: the government confirmed in 2026 that it is reforming low-value-import rules — treat the £135 threshold as correct as of mid-2026 and check GOV.UK for the latest.
When you need to register for UK VAT
The clearest trigger: if you hold stock in the UK (for example in a UK fulfilment centre) at the point of sale, you generally need to be UK VAT-registered and compliant, regardless of the £135 threshold. Sales to VAT-registered UK businesses that provide a valid VAT number are handled by the customer under the reverse charge. If in doubt, take advice early — it is cheaper than unwinding it later.
EORI, customs and FHDDS
Three practical requirements sit alongside VAT:
- A GB EORI number to import goods into Great Britain and make customs declarations — see our customs clearance guide.
- Customs clearance for goods crossing the border.
- An FHDDS-accredited fulfilment partner — a legal requirement for any UK facility storing goods on behalf of overseas sellers.
Holding UK stock vs shipping every parcel
You can post each order individually from your home country, but for any real UK volume, holding stock in-country wins on delivery speed and cost — and pairs with an HMRC bonded warehouse to defer duty and import VAT until goods sell. It is the model most scaling brands move to. Our guide for US brands entering the UK covers the full sequence.
Frequently Asked Questions
Do I need to register for UK VAT to sell into the UK?
It depends on your setup. If you hold stock in the UK at the point of sale, you generally need to be UK VAT-registered. Low-value direct sales from overseas have their own point-of-sale VAT rules, and sales to VAT-registered UK businesses can be handled under the reverse charge. Take advice on your specific situation.
What is the UK £135 rule?
Consignments valued at £135 or less sold to UK consumers from overseas currently have UK VAT charged at the point of sale — by the seller for direct sales, or by the online marketplace where one is used. Above £135, import VAT and customs duty apply at the border. The £135 figure is the total consignment value, not per item, and the rules are under reform — check GOV.UK for the current position.
Do I need an EORI number to sell into the UK?
You need a GB EORI number to import goods commercially into Great Britain and to make (or authorise) customs declarations. It starts with "GB" followed by 12 digits and is obtained through GOV.UK.
Does my UK fulfilment partner need to be FHDDS-registered?
Yes. Any UK facility that stores goods on behalf of overseas sellers must be registered under the Fulfilment House Due Diligence Scheme. Storing your stock with a non-accredited partner puts your goods and your UK operation at risk.