UK VAT Changes 2021

Unfortunately, as of December 28, 2020, I will no longer be able to sell or ship items to customers based in the United Kingdom due to changes in how the UK deals with VAT. This change only affects customers based in the UK, and does not affect customers anywhere else in the world.

As it stands right now, all internationally-based sellers (sellers outside of the UK) will be responsible for collecting and remitting VAT at the point of sale (when a UK customer checks out on an online store). Currently, there is no small business threshold that would omit or provide relief for small business sellers, which has forced me to turn off shipping to my lovely UK customers :-(. Until the UK government sorts out their new VAT rules and introduces a relief threshold for international small businesses, I will not be able to take orders or ship to UK customers from this website shop.


You can still purchase my stuff even though you're based in the UK. My Etsy Shop is open and able to take orders for UK customers. Some items are exclusive to this shop, if you want an item on this shop that's no available on my Etsy shop, please send me a message and I can set up a custom listing for you.

If you have pin points rewards that you'd like to redeem, send me a message and let me know your email address and what reward tier you'd like to redeem. Unfortunately, my Etsy shop does not run a pin points system and you will not be able to accrue more points.


Who is affected by this?
Only customers who live in the United Kingdom are affected by the change in the VAT rules. This does not affect any customers elsewhere in the world.

What about the original customs threshold before these VAT changes?
The one bit of good news that has come out of these VAT changes is the removal of the customs threshold that was in place prior, where items valued above £15 were subject to VAT and customs fees. These changes instead require all sellers to set up a VAT ID to collect the tax and remit it to the UK government.

Why are small businesses closing orders to UK customers instead of registering for VAT?
I don't speak for other small businesses, but as a single person business, registering for, collecting, tracking and remitting VAT for the UK is a huge additional burden that would take a lot of my time and require me to research, learn and maintain understanding of foreign and new tax codes. I would also be dealing with international tax laws and an entirely new tax entity that exists within another country. This represents a massive burden for my small business that I cannot take on, so I am forced to close orders to my UK customers until a time when the UK government can offer a relief or threshold for small business sellers.

How is your Etsy Shop able to take UK orders but your website shop isn't?
Etsy is an Online Marketplace and has the staffing and expertise to collect and remit taxes, including VAT, for its sellers. They have in-house tax experts that are able to navigate the intricacies of dealing with international tax laws and codes that a single seller, like myself, does not have access to or cannot afford to retain.

Why is the shipping cost to the UK is higher in your Etsy shop?
Due to me relying on Etsy to collect VAT and generate the customs form, I have to use their shipping label service which is full cost with no shipping discounts and will be more expensive as a result. I'm sorry, I know how expensive this makes buying goods online, as you will now be charged VAT on top of a very high shipping fee. My hope is that a small business relief threshold is introduced by the UK government and things can go back to normal.

Will this be a permanent change?
Hopefully not! These VAT changes have affected thousands of small businesses worldwide, many of which cannot take on this burden and have had to close sales to UK customers as a result. At some point, my hope is that the UK government realizes this and will be able to enact a threshold that would allow small businesses to be exempt from their new VAT rules. I plan to keep a close eye on new developments and will open up orders to UK customers as soon as a threshold is introduced. It should also be noted that the EU is planning a similar change to their VAT schemes later in 2021.

Can you mark my order as a gift?
Orders will always be marked as commercially sold goods. To mark them as gifts is illegal.

Why are the VAT rules changing?
As far as I can tell, the VAT rules are changing as a part of the UK leaving the EU. I'm not super up to date as to the reasons why and that is as far as I understand it.


My hope will always be that there will be a small business exemption or threshold introduced soon so things can go back to normal. If you're aware of whom to write in order to bring this issue to light, please let me know and please, write to your representatives to make them aware that thousands of small businesses worldwide are affected by these changes and would love to see a small business threshold.