How does VAT work for UK orders?

VAT (value-added tax) will be applied to your orders based on where the brand is shipping the product from at the point of sale. Please see below to learn more about how we will manage domestic and international shipments.

Domestic UK orders:

For any products that brands send from within the UK to a UK-based retailer, Petspace will charge the retailer VAT at checkout for the transaction. This amount will then be automatically remitted to the brand in their order payout, where required. In the event that a retailer is purchasing from a non-VAT registered brand based in the UK, we will not charge the retailer any VAT on the transaction.

International orders:

For VAT registered retailers, import VAT should not be charged at the border, as it should instead be reported in your VAT return via a process known as postponed accounting. Postponed accounting was introduced in the UK from 1 January 2021, and it allows importers, whose VAT registration numbers are included on the relevant import declaration and who intend on using the imported goods for their business, to account for import VAT via their VAT return (instead of at the time of import).

For non-VAT registered retailers placing orders of less than £135, any applicable UK VAT will be charged at checkout. In this situation, UK marketplace rules apply, and VAT will be charged at checkout by Petspace to the retailer.

For non-VAT registered retailers placing orders of more than £135, import VAT and duties will be charged at the border when importing your products.