Selling online from the UK changed materially after 1 January 2021. UK left the EU VAT system; sales to EU consumers are now exports; B2B services to EU customers are reverse-charge; Northern Ireland sits in a different regime than Great Britain for goods. Three different VAT treatments depending on what you're selling and where the customer is. 4invoices gets each one right per transaction without you having to remember the matrix.
UK domestic sales — VAT-inclusive consumer pricing
Selling to a UK consumer means VAT-inclusive pricing on the storefront, the right VAT rate per product (20% standard, 5% reduced for select categories, 0% for food, books, children's clothes, etc.), and a UK invoice showing VAT separately. The platform manages all of this — the Shopify or WooCommerce integration pulls the order, applies the right VAT, and issues the invoice.
Selling to EU consumers — OSS or direct export
From the UK to an EU consumer, the goods are now exports. Two options: (1) Direct export rules — UK VAT zero-rated, customer pays import VAT in their country, complex customs paperwork. (2) OSS (One Stop Shop) via Northern Ireland Protocol — if you have a NI base or distribution, you can use OSS to charge the destination country's VAT and remit quarterly via HMRC. We support both flows.
Selling to EU businesses — reverse charge
B2B services to an EU VAT-registered business are reverse-charge — zero-rated UK VAT, the customer accounts for VAT in their own country. The invoice must show the customer's VAT number (validated via VIES) and the right reverse-charge wording. We validate the VAT number at issuance and apply the correct treatment automatically.
E-commerce VAT — the four scenarios
Scenario 1: UK seller, UK customer (B2C). Standard UK VAT applies — 20% on most goods, 5% on energy/sanitary, 0% on food/books/children's clothes. The invoice shows VAT inclusive pricing (consumers in the UK expect to see the gross price). MTD VAT return picks up the sale via the standard 20%/5%/0% boxes.
Scenario 2: UK seller, EU consumer (B2C). Post-Brexit, this is an export. Two options: ship under direct export rules (UK VAT zero-rated, customer pays import VAT and possibly customs duty on arrival, generally painful for goods under €150), or use the OSS scheme via Northern Ireland Protocol (UK VAT charged at the destination country's rate, remitted quarterly through HMRC). Most UK e-commerce businesses with EU customers register for OSS to avoid customer-side friction.
Scenario 3: UK seller, EU business (B2B). Reverse charge applies — UK VAT zero-rated, the EU business accounts for VAT in their country. The customer's VAT number must appear on the invoice, and we validate it against the VIES (VAT Information Exchange System) database at issue. The supply is reported in Box 6 of the UK MTD VAT return as a zero-rated supply.
Scenario 4: UK seller, non-EU customer (B2C or B2B). Standard export — UK VAT zero-rated, customer handles import VAT and duties in their country. Common destinations are US, Canada, Australia, UAE, Switzerland. The invoice shows £ pricing (or the customer's currency if you've enabled multi-currency) with no UK VAT. Customs declarations are a separate workflow.
Frequently asked
Do I need to register for OSS?
Only if you're selling B2C goods to EU consumers AND you have a Northern Ireland base or warehousing presence (the NI Protocol qualifier). Pure-GB sellers can use OSS via the GB OSS scheme but coverage is limited. Most established UK e-commerce businesses register either for OSS (NI Protocol) or for direct VAT registration in their main EU destination countries — the right answer depends on volume.
Which marketplaces does 4invoices integrate with?
Shopify, WooCommerce, Magento, BigCommerce, PrestaShop natively. Amazon Seller Central, eBay UK and Etsy via marketplace connectors that handle marketplace-collected VAT. For full B2B catalog, integrations with Salesforce Commerce Cloud and Adobe Commerce on Enterprise plans.
How does customs declaration work?
Customs is outside the invoicing scope — handled by your courier or freight forwarder (DHL Express, UPS, FedEx, DPD all offer integrated customs). We provide the invoice data they need (HS code, COO, customs value, intended use) via API to the major couriers. You set up the courier link once; subsequent shipments produce the declaration automatically.
Set up post-Brexit e-commerce invoicing today
Free trial. Connect your Shopify or WooCommerce store, see the four VAT scenarios applied automatically per order.