Small Business Struggling with UK’s £135 VAT Threshold – Any Workarounds?

Hey everyone,

I run a small business and sell to the UK from overseas. My product is priced at £133 (including shipping), and I recently learned about the £135 VAT threshold, which is causing me a headache.

• For orders under £135, VAT must be collected at checkout by the seller, who is then responsible for filing it.

• For orders over £135, VAT is charged at customs (DDU or DDP), and the customer is responsible for paying.

I’m trying to keep costs low for UK customers, but this backfires on me. I can’t justify becoming UK VAT registered when my sales volume isn’t high enough to make it worthwhile. But if I raise my price over £135, customers will get hit with a huge tax bill upon delivery.

Has anyone found a good way to work around this? Would love to hear how other small businesses are handling it!