December 31, 2020

Changes to collection of VAT for orders to the United Kingdom

As of January 1, 2021 (GMT), the following changes apply to the movement of goods to and from the United Kingdom:

  • Merchants shipping goods located outside of the UK at the point of sale into the UK are now required to collect and remit VAT on orders not exceeding £135 in value. Merchants who have an active tax registration for the UK in Shopify will now automatically collect VAT on all orders not exceeding £135. Orders over £135 will continue to exclude all taxes.
  • VAT will no longer be automatically applied on orders shipped between the UK and European Union countries (and vice versa) if there is no tax registration added.

Learn more about this change and other changes related to Brexit in the Shopify Help Center.