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The short answer
When a seller outside the UK sells goods to a customer in Great Britain in a consignment worth £135 or less, UK VAT is charged at the point of sale instead of at the border: the seller charges and accounts for it, or the online marketplace does if the sale goes through one. Above £135, normal import VAT and customs duty are collected on arrival, usually from the customer by the delivery company; non-excise goods of £135 or less carry no customs duty.
Nigerian brands selling to UK customers from a website or Instagram shop often get this rule wrong in one of two ways: they ignore UK VAT entirely, or they assume the customer will settle everything with the courier. Since the UK changed the system, the answer depends on the value of the consignment and how the sale is made. This guide follows HMRC's page on overseas goods sold directly to UK customers and the GOV.UK guide to goods sent from abroad.
The rule in one table
| Situation | Who handles UK VAT | Customs duty |
|---|---|---|
| You sell direct, consignment £135 or less, goods outside the UK at sale | You charge UK VAT at checkout and account for it to HMRC | None on non-excise goods |
| Same, but sold through an online marketplace | The marketplace is liable for the VAT | None on non-excise goods |
| Consignment over £135 | Import VAT at the border; the customer normally pays the delivery company before delivery or on collection | Due at the applicable rate |
| Sale to a UK VAT-registered business that gives you its VAT number | The customer accounts for VAT under the reverse charge | As per value |
Details that catch sellers out
- Consignment, not item. HMRC says the £135 limit applies to the total consignment imported, so items shipped together are added up.
- Do not split or adjust values. HMRC warns that if a consignment's value is changed so that it goes above £135, the seller may be liable for import VAT and customs duty.
- No low-value relief. The old relief for goods valued at £15 or less has been removed.
- Exclusions. The point-of-sale rules do not apply to consignments containing excise goods (alcohol and tobacco, for example) or to non-commercial goods such as gifts. Gifts worth £39 or less are not charged VAT; above that the recipient pays (GOV.UK, goods sent from abroad, updated 1 October 2026).
- Northern Ireland works differently: import VAT applies there.
- Invoices and records. Issue a full invoice and keep records, including VAT invoices, for 6 years from the date of sale.
Do you have to register for UK VAT?
HMRC's page says sellers do not have to register if they only sell goods located outside the UK to UK VAT-registered businesses, and need not register if all their supplies are zero-rated. It does not give a registration threshold for direct sales to consumers of goods outside the UK. If you sell direct to UK consumers from your own website and charge VAT at checkout, plan on registering, and confirm with HMRC or an adviser before your first sale. If you sell only through a marketplace, the marketplace accounts for the VAT on those consignments.
Worked example
Example only. A Lagos skincare brand sells direct to a customer in Leeds: two jars at £40 each and a £15 soap, £95 in total, shipped together. The consignment is under £135, so the brand charges UK VAT at checkout. If its prices exclude VAT and the 20% standard rate applies, the customer pays £95 + £19 = £114, and the brand reports the £19 to HMRC. The customer pays nothing further to the courier for VAT or duty. If the same customer orders £150 of goods in one box, it is over £135: no point-of-sale VAT, and import VAT and any duty are collected on arrival, calculated on the price plus postage, packaging and insurance.
VAT rates differ by product. Check the rate for each line on GOV.UK before setting checkout prices.
What the customer experiences
GOV.UK tells UK recipients that for goods of £135 or less they bought themselves, the seller has already included VAT in the total. For goods over £135, they pay the delivery company before delivery or when they collect, and the carrier normally holds parcels for about 3 weeks before returning them to the sender. A customer surprised by a charge on a parcel worth under £135 is a sign the seller has not charged VAT properly. See parcels held for duty.
Steps for Nigerian sellers
- Decide whether you sell direct, through a marketplace, or both.
- Set your checkout to add UK VAT on GB orders of £135 or less if you sell direct, and confirm registration with HMRC.
- For larger orders, tell customers in advance that VAT and duty will be collected on delivery, or price delivered duty paid through your courier.
- Keep invoices and records for 6 years.
- Read shipping orders from Nigeria to UK customers and customs forms for posted goods.
Where Pryme fits
A Nigerian business can open a Pryme Business Account holding NGN and GBP with local details for each, so UK customer payments arrive in pounds and VAT can be set aside before converting with Swap. This is general information, not tax advice.
Questions people ask
What is the £135 rule for UK imports?
For consignments of £135 or less sold to customers in Great Britain, UK VAT is charged at the point of sale by the seller, or by the online marketplace, instead of at import.
Does my UK customer pay duty on a parcel under £135?
Non-excise goods of £135 or less carry no customs duty in Great Britain, according to GOV.UK. VAT should already be in the price.
Do Nigerian sellers need UK VAT registration?
HMRC's page does not give a threshold for direct sales of goods outside the UK to UK consumers. Sellers charging UK VAT at checkout should expect to register; marketplace sales are handled by the marketplace.
What happens if the order is over £135?
Normal import VAT and customs duty apply at the border. The customer normally pays the delivery company before delivery or on collection.
Sources
- HMRC on GOV.UK: VAT and overseas goods sold directly to customers in the UK (updated 13 May 2022) · accessed Oct 2026
- HMRC on GOV.UK: VAT and overseas goods sold to customers in the UK using online marketplaces (updated 13 May 2022) · accessed Oct 2026
- GOV.UK: Tax and customs for goods sent from abroad, tax and duty (updated 1 Oct 2026) · accessed Oct 2026
- GOV.UK: VAT rates (updated 30 Sep 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.