financeb2bUK VAT and EORI: what an EU seller has to register for
Britain is a third country for VAT purposes now. The rules are not hard, but they are different from the ones you know, and two of them catch sellers out before the first shipment leaves.
An EU business selling into the United Kingdom generally needs a GB EORI number to move goods across the border, and must consider UK VAT registration. There is no registration threshold for businesses without a UK establishment: the UK threshold applies to UK-established businesses only, so a non-established seller making taxable supplies in Britain registers from the first sale. For goods sent directly to consumers in consignments valued at £135 or less, the seller charges and accounts for UK VAT at the point of sale rather than at import. Above that, VAT is handled at import. Always confirm current rules with HMRC, and remember the liability is payable in sterling.
EORI: the number that moves goods
An EORI number identifies a business to customs authorities. Since Britain left the EU customs union, the two systems are separate: your EU EORI does not work in Britain.
- A GB EORI is needed to import into or export from Great Britain.
- An EU EORI is still needed on the EU side.
- Movements involving Northern Ireland follow their own arrangements and may require an XI EORI.
Applying is free and done through gov.uk. Without one, a shipment stops at the border and the costs of that delay are yours.
When UK VAT registration becomes compulsory
The point most EU sellers miss: the familiar UK VAT registration threshold is for businesses established in the UK. A business with no UK establishment that makes taxable supplies in Britain does not get a threshold at all. In practice, that means registering before the first taxable sale rather than waiting to grow into it.
Whether a given sale is a taxable supply in the UK depends on what you sell, where it is when it is sold, and who the customer is. That is a question for your tax adviser and for HMRC, not for a payments site — we flag it because the assumption that "we are under the threshold" is the single most common mistake we see.
This page describes the shape of the rules so you know what to ask about. It is not tax advice, and financeb2b is not authorised to give any.
The £135 consignment rule, for anyone selling online
For goods sent to Great Britain in a consignment worth £135 or less, VAT is collected at the point of sale rather than at import. Practically, that shifts work onto the seller.
| Consignment value | Who accounts for VAT | When |
|---|---|---|
| £135 or less, sold to a consumer | The seller | At the point of sale |
| £135 or less, sold to a VAT-registered business | The customer, by reverse charge | On their return |
| Over £135 | Handled at import | At the border |
The £135 figure is the consignment value, not the price of a single item, and excludes transport and insurance charged separately. Where an online marketplace facilitates the sale, the marketplace is generally liable instead of the seller.
Paying HMRC, which is where the account comes in
A UK VAT liability is denominated in sterling and paid to HMRC in sterling. If your only account is in euro, every quarterly return turns into a conversion, at whatever margin your bank applies, on a sum you did not choose the size of.
Holding sterling solves two problems at once: you pay HMRC out of sterling you already earned in Britain, and you stop converting twice — once when your UK customers pay you, and again when you pay the tax.
Hold sterling where you earn it, and pay HMRC without converting twice.
See what an account costsA short checklist before the first shipment
- Apply for a GB EORI number through gov.uk. It is free.
- Establish with your adviser whether you make taxable supplies in the UK, and register for UK VAT if so — without assuming a threshold applies to you.
- Decide who is the importer of record, you or your customer. It changes who pays the import VAT and duty.
- Check whether your sales run through a marketplace, which may shift the VAT liability away from you.
- Arrange a sterling account before the first return is due, not after.
Questions people actually ask
Do I need to register for UK VAT as an EU company?
What is a GB EORI number?
What is the £135 rule?
Does an EU VAT number work in the UK?
Can I pay HMRC from a euro account?
Is Northern Ireland treated the same as Great Britain?
Sources
- HMRC and gov.uk — UK VAT registration for businesses without a UK establishment, the £135 consignment rules, and EORI application.
- The rules summarised here change. Confirm the current position on gov.uk before acting; this page is not tax advice.
- Gemba corporate fee schedule, ge.mba/pages/corporate-fees, checked 22 October 2026.
Earn in sterling, pay HMRC in sterling.
A real UK account for a company registered in the EU, with published fees and an FX margin you can read in advance rather than discover on the statement.