The issue for 'foreign' retailers shipping to the UK, is that they now have to collect/pay VAT for every sale.
This means the seller must
create an online account with Her Majesty's Revenue and Customs (HMRC) and
register for a VAT number in order to deliver e-commerce orders to the
UK.
The Seller will be required to collect
all VAT fees from buyers at time of product purchase. This VAT fee was previously collected when a parcel entered the
UK, typically with the buyer having to pay VAT to release the package from Customs.
So basically all overseas online retailers must act as tax collectors for the HMRC. Retailers that have tried to navigate the registration are asked for their UK Tax ID or UK business ID, that they
do not have, as they are not a UK business. And the fact that they are overseas or foreign online retailers is
missed by any online VAT registration forms. So there is currently no path forward for online retailers outside the UK.
The EU has, as of July, has implemented a similar set of regulations.
Online retailer, you will now be required to create an online account and register for a VAT number in order to deliver e-commerce orders to the EU.
You will be required to collect all VAT fees from your buyers at time of product purchase.
This VAT fee was previously collected when a parcel entered the EU, typically with the buyer having to pay VAT to release the package from Customs. Prior to July 1, 2021, no VAT fees were required for commercial goods valued up to 22 euros (approximately $26).
Goods valued at 22 euros or less were able to be shipped into EU countries with no additional fees required for buyers.
After July 1, 2021, all goods imported to the EU valued at up to 150 euros (approximately $178) will be subject to VAT and items valued at more than 150 euros will be subject to VAT and duties. VAT rates are different for each EU country based on the service and type of product being delivered, with most VAT fees ranging around 20% of the total cost (sales price plus shipping).