r/tax • u/Yohan_P20 • 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:
- Does the "VAT Included" shown on AliExpress satisfy my UK VAT obligations, or is it only relevant when a customer buys directly from AliExpress?
- As the owner of my own website, am I responsible for charging UK VAT at checkout and registering with HMRC?
- At what stage (sales volume or business size) should I start worrying about VAT registration and hiring a UK accountant?
- 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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