I run a small store in Munich. This is how it works (from Germany).
Orders under £135:
UK 20% VAT included in selling price
Import Duty added to this if goods not made in EU/UK. Courier will invoice for this.
Courier will add Handling Fee for doing this. Courier will invoice for this.
Orders Over £135:
German VAT not included in selling price.Import Duty added to this if goods not made in EU/UK (rate depends on what the goods are). Courier will invoice for this.
UK VAT of 20% added to Cost + Duty. Courier will invoice for this.
Courier will add Handling Fee for doing this. Courier will invoice for this.
This extras are normally charged before delivery. At the moment it seems the Courier companies (UPS, DHL, etc) are quite on it as good money to be made. Post Offices don’t seem to be as on it.
We won’t sell goods to UK for under £135 as we would have to register with HMRC, adjust our TAX rate for these orders from 19% to 20%, collect this money and then do a yearly UK VAT Return. Just not worth it for us at present.