According to relevant EU laws, all goods that have been sold in the EU, even those using third-party logistics and warehousing services, must pay VAT according to law.
According to the latest VAT Act in the UK, if the seller is a non-UK company and stores goods in the UK, then it must register a VAT number in the UK, otherwise it will be prohibited from engaging in sales activities in any online mall.
The main advantage of the UK is its low tax rate. The UK tax authorities require sellers to declare in compliance and pay taxes on time. The low tax rate in the UK cannot enjoy the deduction of import VAT, but for some large sellers who declare at normal tax rates, if the seller retains the C88 file (EU unified customs declaration form) and the C79 file (import VAT detailed list) issued by the customs in the same month, it can enjoy the deduction of import VAT.
After having a UK VAT tax number, many sellers mistakenly believe that if there is no sale of products, it will not have much impact if they do not declare VAT. But in fact, in the UK, whether there is sales of products or not, as long as the tax number is not cancelled, VAT needs to be declared. If the seller does not declare VAT in time, the UK tax authorities can directly calculate the tax based on the data provided by the platform backend.