How Marketplaces And Sellers Apply Low-Value Consignment VAT

Low-Value Consignment VAT UK VAT treatment applying to specified consignments valued at £135 or less, including point-of-sale VAT rules in certain direct and marketplace transactions.

The operational effect for marketplaces and sellers is the key practical challenge: determining who is the supplier for VAT purposes, showing VAT correctly at checkout, and remitting the tax to HMRC. The rules allocate responsibility in a way that often places collection and reporting obligations on the platform that facilitates the sale — but contractual terms and the structure of the transaction can change which party is accountable.

When A Marketplace Is The Deemed Supplier

Online marketplaces commonly act as intermediaries that enable offers, take payments, and remit funds to third-party sellers. UK rules can treat the marketplace as the