Ecommerce VAT Calculator UK 2026

Calculate VAT for online sellers in the UK. Covers UK VAT registration threshold, distance selling, and One Stop Shop (OSS) for EU sales.

Annual Turnover (£)

% of Sales to UK Customers

% of Sales to EU Customers

% of Sales to Rest of World

Frequently Asked Questions

What is the VAT registration threshold for online sellers in the UK?

The UK VAT registration threshold is £90,000 per year (as of April 2024). If your total taxable turnover exceeds this amount in any rolling 12-month period, you must register for VAT with HMRC. Online sellers on platforms such as Amazon, eBay, or their own Shopify store must include all sales in this calculation.

How does the EU One Stop Shop (OSS) work for UK sellers?

The EU One Stop Shop (OSS) allows UK sellers to register for VAT in a single EU member state and file one quarterly return covering all EU sales. Once your EU B2C sales exceed €10,000 (approximately £8,500) per year, you must charge the VAT rate of the customer's country. OSS simplifies this by replacing individual country registrations with one central filing.

When do I need to register for VAT as an ecommerce seller?

You must register for UK VAT as soon as your taxable turnover exceeds £90,000 in any 12-month rolling period, or if you expect it to exceed £90,000 in the next 30 days alone. You can also register voluntarily below this threshold, which lets you reclaim input VAT on business purchases.

What is the difference between VAT and customs duty for online sellers?

VAT is a consumption tax charged on sales to UK and EU customers and is collected at point of sale. Customs duty is a tariff imposed on goods imported from outside a country or trading bloc, applied at the border. For goods sold to non-EU/non-UK customers, UK VAT is typically zero-rated, but the buyer may face import VAT and customs duty in their own country.

Do Amazon and eBay handle VAT on my behalf as a marketplace facilitator?

Yes. Under UK and EU marketplace facilitator rules, Amazon and eBay are responsible for collecting and remitting VAT on sales made by third-party sellers through their platforms where the seller is based outside the UK/EU, or for all B2C sales within the EU via OSS rules. However, if you sell on your own website, you remain solely responsible for VAT compliance.