Question 1

Do I need to register with HMRC before I can start collecting VAT on low-value orders?

Accepted Answer

No, you will just need to be registered prior to the end of the first quarter that your remittance is due.

Question 2

Can I collect and remit VAT on all orders, including those above £135, so I don’t have to track order amounts?

Accepted Answer

No, any shipment where the total of goods is > £135 must have VAT and duty paid upon import. Our Dashboard reporting makes it easy to keep track of which orders you need to remit on.

Question 3

Do I still need to collect VAT on low-value orders if I am shipping B2B (to a distributor or retailer)?

Accepted Answer

Yes, unless: your customer provides you with their UK VAT number and you include it on the VAT invoice, which then shifts the responsibility to pay VAT to them. A VAT number must be included on all B2B sales invoices. If you don’t have a VAT number on the invoice, you are responsible for VAT.

Question 4

Do I need an EORI to register for VAT with HMRC?

Accepted Answer

If you are a business in the EU importing into the UK, you will need an EORI and a VAT number to do business.An EORI number is required for any business located in the EU, that does business outside the EU. If you are a business in the EU that does business in the UK (England, Scotland, Wales, Isle of Man), you will need an EORI. A separate EORI may be needed for shipments into Northern Ireland. Not having an EORI will result in your shipments being held and stored in customs, resulting in fees and delays. UK VAT registration through HMRC is a different process from getting an EORI number. However, if you apply for an EORI as a UK VAT registered business HMRC will link all imports to your VAT number. UK VAT registration is only needed if you import goods valued under £135.

Question 5

If my business has a UK VAT and an EORI number, do I need to find a UK resident IOR (importer of record) to represent me as well?

Accepted Answer

No, a UK IOR is not usually required, unless you are a tech company or bank with an overseas data center, or a manufacturer sending sales reps or potential customers, samples, or promotional items.

Question 6

How do I turn off orders under £135 in the Zonos Dashboard? What is the customer experience like?

Accepted Answer

It’s easy to turn low-value orders under £135 off, so HMRC VAT remittance is not needed. Read more in our UK VAT Dashboard settings page. Once low-value orders are turned off, if you have the Zonos Hello popup on your site, your customers will be greeted with helpful information about shipping into the UK, including language that your business does not currently ship orders below 135 GBP.

Question 7

If I export my goods from Northern Ireland, do I still have to pay duty and VAT?

Accepted Answer

Yes. While Northern Ireland will retain some EU customs agreements, they are still subject to the UK for duty and VAT.

Question 8

Is there a fee to register with HMRC?

Accepted Answer

HMRC does not require a registration fee.

Question 9

Do I need a bank account in the UK if I am using Zonos for LC or LCG?

Accepted Answer

A UK bank account is not required for Zonos products.

Question 10

Do I need a UK bank account to register with HMRC?

Accepted Answer

A UK bank account is not required for a VAT number, but bank information is needed to wire your VAT remittance quarterly.

Question 11

Do I have to collect VAT for all UK orders?

Accepted Answer

No, you only collect and remit VAT for orders valued at £135 or less. VAT for orders above £135 will be collected at UK customs.

Question 12

How can I get a VAT number?

Accepted Answer

Visit the HMRC website and register for a VAT ID number.

Question 13

How do I calculate VAT?

Accepted Answer

20% VAT is applied to the dutiable value of the items, along with any shipping charges or insurance.

Question 14

If I export my goods from Northern Ireland, do I still have to pay duty and VAT?

Accepted Answer

Yes. While Northern Ireland will retain some EU customs agreements, they are still subject to the UK for duty and VAT.

Question 15

Can Zonos assist me with VAT calculation?

Accepted Answer

Yes! Our Landed Cost Guarantee will help you with VAT calculations.

Question 16

How is the £135 amount defined?

Accepted Answer

The value should be based on the intrinsic value of the goods, which equates to the price at which the goods are sold, excluding the following: transport and insurance costs; any other taxes and charges.