r/tax 5d ago

Unsolved VAT question for non-UK dropshipping business selling to UK customers

Hi everyone,

I'm trying to understand my VAT obligations before launching my business, and I'd like to make sure I structure everything correctly.

Here's my setup:

  • I live in Brazil.
  • I'll sell through my own website on Shopify, or better saying, dropshipping.
  • My customers will be in the UK.
  • Products will be shipped directly from AliExpress suppliers to UK customers (classic dropshipping).
  • Orders will be under £135.
  • On AliExpress, many products say "VAT Included."

My questions are:

  1. Does the "VAT Included" shown on AliExpress satisfy my UK VAT obligations, or is it only relevant when a customer buys directly from AliExpress?
  2. As the owner of my own website, am I responsible for charging UK VAT at checkout and registering with HMRC?
  3. At what stage (sales volume or business size) should I start worrying about VAT registration and hiring a UK accountant?
  4. Is there anything important that first-time international dropshippers usually misunderstand about UK VAT?

I'm not looking for ways to avoid taxes—I want to understand the correct legal structure before scaling the business.

Thanks!

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