Understand your UK tax obligations as a print on demand seller. Learn about VAT, invoice generation, international shipping taxes, and how to manage your POD business taxes correctly.
As a print on demand seller in the UK, understanding your tax obligations is crucial for running a compliant and successful business. Tax requirements can vary depending on your business structure, sales volume, and where you're selling.
This guide covers the essential tax information UK-based print on demand sellers need to know, including VAT responsibilities, invoice generation, international shipping taxes, and record-keeping requirements. Whether you're selling custom posters, mugs, or wall art, proper tax management is essential.
VAT collection and remittance is the seller's responsibility in the UK. If your business is VAT-registered, you must charge VAT on your sales and submit regular VAT returns to HMRC.
Generating proper invoices is essential for tax compliance and record-keeping. Papello makes this process straightforward for sellers.
Note: Screenshots of the invoice generation feature can be added to this section to show sellers exactly how to access this functionality in their dashboard.
When shipping orders to the United States, there are specific tariff and duty requirements that sellers need to understand.
This "Duties Paid" approach means your US customers receive their orders without unexpected customs charges, improving customer satisfaction and reducing support queries.
Papello supports various payment methods, and all transactions are recorded in your dashboard for tax purposes.
Maintaining accurate records is essential for tax compliance. HMRC requires businesses to keep detailed records of all transactions.
Papello Advantage: Generate VAT invoices directly from your dashboard for easy record-keeping. All order and payment information is stored in your account for easy access.
While Papello doesn't provide tax reporting tools, the platform makes it easy to access the information you need for your tax returns.
Recommendation: Consider using accounting software like Xero, QuickBooks, or FreeAgent to manage your tax records. These tools can help you track income, expenses, and VAT obligations more efficiently.
For UK small businesses, understanding when you must register for VAT is essential to remain compliant and avoid penalties. From 1 April 2025, the VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period and is set to stay the same for 2026.
This detailed guide explains how the threshold works: you must monitor your taxable turnover continuously, not just at the end of the tax year. If your turnover exceeds £90,000 in any rolling 12-month period, you must register for VAT within 30 days of realising you've exceeded the threshold.
You can also register voluntarily if your turnover is below this threshold, which may be beneficial if you want to reclaim VAT on business expenses.
Important: This threshold applies to your total taxable sales, not just print on demand products. Include all business income when calculating your turnover. Keep detailed records to track your rolling 12-month turnover accurately.
If you're operating as a sole trader or in a partnership, you'll need to complete a Self-Assessment tax return each year. This includes declaring all business income and expenses.
Keep detailed records throughout the year to make completing your tax return easier. Papello's invoice generation feature helps you maintain proper documentation.
If you operate as a limited company, you'll need to pay Corporation Tax on your profits. The main rate for Corporation Tax is 25% for the 2026/27 tax year (for profits over £250,000). Companies with profits between £50,000 and £250,000 pay Corporation Tax at a marginal rate, while those with profits under £50,000 pay at the small profits rate of 19%.
Limited companies must also file annual accounts and a Corporation Tax return with HMRC. Consider consulting with an accountant if you're operating as a limited company.
This guide provides general information about UK tax obligations for print on demand sellers. Tax laws can be complex and may change, so it's always advisable to:
For specific tax advice tailored to your situation, always consult with a professional tax advisor or accountant.
Papello makes tax management easier with VAT invoice generation and comprehensive order records. Start your POD business today with the tools you need for tax compliance.
