The VAT policies outlined in this article pertain to orders shipped to the UK. Shipping to the EU? Learn more about how VAT applies to orders shipped to the EU.
Why is Reverb doing this?
This is a requirement set by the UK's HMRC due to UK post-Brexit changes and UK B2C eCommerce reforms. For more information, you can check out this article by our tax partner, Avalara.
When you sell an item with a cost of £135 or less on Reverb to a buyer in the UK, you're required to include the packing slip provided by Reverb, which contains all the information required by UK customs.
What do I need to do as a seller?
Beyond printing and including the packing slip provided by Reverb for every order totaling £135 or less, no additional action is required on your part. Reverb automatically calculates, collects, and remits VAT to the UK government on your behalf.
Orders above £135 will use the existing import VAT procedures. This means the seller may pay the import VAT (and duties) on clearance, and reclaim if they have a UK VAT number. Alternatively, the seller may opt to have their customer pay at customs or to the delivery agent.
Unable to use Reverb Payments?
The following only applies for orders placed before May 13, 2026.
If you use PayPal to get paid, you may see a VAT amount on your Reverb selling statement. Here's why:
- In these PayPal-only transactions, Reverb, as an online marketplace, is still responsible for collecting and remitting VAT to the taxing authorities.
- These taxes are paid out to the seller in the initial payout for the order.
- The VAT amount is then added to your Reverb Statement, which is collected on the 1st of the month (along with any other Reverb Selling, Bump, shipping label fees, etc). You will not be charged any selling fees on the taxed amount.
Note that for both Reverb Payments and Reverb Wallet, the payment processing fee is calculated on the full order total (including the VAT amount), as this payment processing service is needed to complete the entire online transaction. PayPal charges its own processing fee separate from Reverb.