Accounting software for UK ecommerce sellers
OSS for EU distance sales, IOSS for low-value imports, UK marketplace facilitator VAT, deemed-supplier rules, Amazon / eBay / Etsy / Shopify integration and HMRC MTD VAT.
UK ecommerce VAT got significantly more complex after Brexit. The EU's One-Stop-Shop (OSS) lets UK sellers register in one EU country and pay VAT on all EU B2C sales through that single registration — instead of registering in every member state where the €10,000 distance-selling threshold is crossed. The Import One-Stop-Shop (IOSS) handles low-value (€150 or less) consignments going INTO the EU. Inside the UK, marketplace facilitator rules (effective January 2021) shift VAT responsibility to platforms like Amazon, eBay, Etsy, and Shopify for certain transaction types. This page covers the post-Brexit ecommerce VAT stack.
UK ecommerce sellers at a glance
| Field | Value |
|---|---|
| UK VAT threshold | £90,000 (from April 2024) |
| OSS registration | One EU country handles VAT for all EU B2C sales |
| IOSS registration | For consignments ≤ €150 imported into EU |
| UK marketplace VAT | Platforms collect on certain B2C transactions since January 2021 |
| Marketplaces supported | Amazon UK, eBay, Etsy, Shopify, Wayfair, OnBuy |
| EU distance-selling threshold | €10,000 EU-wide (replaced country-by-country thresholds in July 2021) |
Rates and thresholds verified against HMRC and gov.uk as at 2026-05-18. Re-verify after each Autumn Budget and Spring Statement.
OSS — selling B2C across the EU from the UK
Since 1 July 2021, EU B2C distance sales above €10,000 EU-wide annual threshold (not per country anymore) require VAT to be paid at the destination country's rate. The One-Stop-Shop (OSS) is the simplification: register for OSS in one EU country (Ireland is the most common for UK sellers because of language and proximity), file ONE quarterly OSS return covering all EU sales, and the registered country distributes the VAT to each destination state.
Pre-Brexit and pre-OSS, UK sellers had to register for VAT in every EU country once the country-specific distance-selling threshold was exceeded (typically €35,000–€100,000). OSS replaces that with one registration. Without OSS, the alternative is registering for VAT in every EU country where you sell — administratively painful but sometimes preferred for high-value sellers in specific countries. HelloBooks handles both: OSS quarterly returns through your chosen EU registration country, or per-country VAT returns if you stay registered in multiple member states.
IOSS — low-value imports going INTO the EU
Consignments valued at €150 or less imported into the EU from outside (including the UK post-Brexit) are no longer VAT-exempt at import. The Import One-Stop-Shop (IOSS) lets non-EU sellers (or their intermediary) collect VAT at point of sale and remit it via the IOSS portal — avoiding the previous customs collection / parcel-delivery friction. The customer receives goods VAT-paid; the freight forwarder doesn't need to bill VAT separately at delivery.
Without IOSS, every EU-bound consignment under €150 triggers a customs declaration and VAT collection at the border — typically handled by the parcel carrier with a handling fee, creating a poor customer experience. IOSS is now industry-standard for UK ecommerce sellers shipping to EU customers. HelloBooks tracks IOSS-eligible orders (B2C, value ≤ €150, intra-EU consumer destination) separately from non-eligible orders and produces the monthly IOSS return.
UK marketplace facilitator and deemed-supplier rules
Effective 1 January 2021, online marketplaces (Amazon UK, eBay, Etsy, Wayfair, OnBuy, Shopify Markets) became the 'deemed supplier' for VAT purposes on certain UK transactions: (1) B2C sales by overseas sellers (no UK establishment) under £135 going into the UK; (2) B2C sales of imported goods regardless of value where the marketplace facilitates the sale. The marketplace charges, collects and remits the UK VAT on those transactions — and the seller receives the gross-of-VAT price net the marketplace fees.
Sellers with a UK establishment (UK Ltd company or UK-resident sole trader) are NOT subject to the deemed-supplier rule on their own UK-domestic sales — those flow through the seller's own VAT registration. The split matters because deemed-supplier sales count toward the marketplace's VAT return (not yours) while UK-domestic direct sales count toward yours. HelloBooks tags each Amazon / eBay / Etsy / Shopify settlement line by VAT treatment so the GSTR-1 equivalent (UK VAT100) is correct.
Questions UK ecommerce sellers ask
Other UK industry guides
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