In this course · 2 of 8
Course 4
Sell across borders
8 lessons · 8 min
- 1Must a Hong Kong seller charge EU VAT when selling to EU customers?
- 2Must I charge UK VAT on goods shipped from Hong Kong to UK customers?
- 3Do I owe US sales tax when selling from Hong Kong to US customers?
- 4Do I need an import or export declaration for online orders shipped in or out of Hong Kong?
- 5Is selling alcohol or tobacco online legal in Hong Kong, and which goods are dutiable?
- 6Is dropshipping legal in Hong Kong, and do I need to register and pay tax?
- 7Can a Hong Kong online store sell to mainland China consumers?
- 8Does selling to mainland China create mainland tax for a Hong Kong company?
The short answer
As of 2026, for consignments of £135 or less sold directly to UK customers, the overseas seller must register for UK VAT with HM Revenue and Customs (HMRC) and charge it at the point of sale. For higher values, VAT and any duty are normally collected on import. There is no registration threshold for overseas sellers.
The UK government's guidance on overseas goods sold directly to customers in the UK sets two broad cases:
- Consignments valued at £135 or less: VAT is accounted for at the point of sale. An overseas seller needs to register for UK VAT, charge VAT to the customer and file UK VAT returns. Registration applies from the first sale, since the usual UK turnover threshold does not apply to non-UK sellers.
- Consignments above £135: VAT is normally collected at the border (and customs duty where payable), unless special arrangements apply.
Online marketplaces are treated as responsible for the VAT on some sales made through them by overseas sellers, so check how your marketplace handles it.
A Hong Kong company that registers for UK VAT may need to appoint a UK representative or use an agent for filing. Thresholds, rules and exemptions have changed over time, so use the UK government pages and check them before you start shipping.
Legal basis and sources
The law
- Value Added Tax Act 1994 (UK)
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
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