Once you ship beyond Britain, the VAT rules change — and so does the paperwork.
Quick answer. Goods exported outside the UK are generally zero-rated for VAT, provided you keep proof they left the country. Sales to EU consumers now trigger import VAT abroad, often handled via IOSS. Exporting also takes items out of the VAT Margin Scheme.
Selling cards internationally is one of the great advantages of live-selling and marketplaces. But the moment goods leave the UK, you’re into different VAT territory. Here’s the practical shape of it for a card business.
Exporting to customers outside the UK and EU
Goods you export from the UK to a country outside the UK and EU are generally zero-rated for VAT — meaning no UK VAT is charged — provided you keep proper evidence of export (proof the goods actually left, such as postage and customs records). No evidence, no zero-rating, so keep your shipping paperwork.
Selling to EU consumers
Since Brexit, sales to EU buyers are exports too. In practice, the import VAT (and possibly duty) becomes due in the customer’s country. For lower-value consignments, the Import One-Stop Shop (IOSS) is the mechanism that lets you collect and remit EU VAT without registering in multiple member states, with a €150 threshold that determines how duty is handled. Whether you operate IOSS yourself or your marketplace handles it depends on the platform.
The Margin Scheme wrinkle
Here’s the part that catches people out: exporting and the Margin Scheme don’t simply stack. If you zero-rate an export, that sale generally comes out of the Margin Scheme and is treated under normal export rules instead. It’s not difficult, but it does need handling deliberately so you don’t double-count or mis-declare.
Business customers
If you’re selling B2B to overseas businesses rather than consumers, the place-of-supply rules can put the transaction outside the scope of UK VAT altogether — but the treatment differs for goods versus services, so it’s worth a quick check rather than an assumption.
The headline: international sales are a huge opportunity, but they turn one simple VAT return into several moving parts. Get the evidence habit right early, and flag cross-border volume to your accountant before it becomes material.
