We are not yet set up with a UK VAT tax code... I am quite sure many other businesses have not made it through this extremely difficult process yet either. I see that you can now prepay a flat fee for Canada with First Class Mail. I am HOPING that there will be a similar option for the UK at some point soon?
Here is info on this vat tax that is to be paid:
For goods imported into the UK in consignments not exceeding £135 in value, VAT is now charged at the point-of-sale (i.e. during checkout) instead of at the point of importation. For the purposes of this policy, a consignment is a group of goods delivered to a person, in this case your customer.
Additionally, the Low-Value Consignment Relief went away. This rule previously exempted goods valued at £15 or less.
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. Only the owner of goods at the time of the import can reclaim the VAT.
To comply with these changes and sell your goods into the UK:
1. You will need a UK VAT Number.
Both B2B and B2C businesses selling goods to the UK will be required to register for a VAT number with Her Majesty’s Revenue and Customs (HMRC). For B2B businesses, this obligation is not required if the UK shopper provides their VAT registration number.
Your other option is to NOT sell to them UNDER £135