Australia to UK customs charges: import duty, VAT, the £135 rule and 0% FTA duty (2026)
Selling merino knitwear, opal jewellery, swimwear, skincare, ceramics or art from Australia to UK buyers, or ordering them from the UK? For parcels of £135 or less there is no UK customs duty today, and the 20% VAT is charged at checkout by the marketplace or the seller. Above £135 the buyer pays 20% import VAT, but goods made in Australia can come in at 0% duty under the UK–Australia free trade agreement, in force since 31 May 2023, if the preference is claimed. Without it, duty is the normal UK rate: 12% on wool jumpers, T-shirts and swimwear, 4% on stoneware, 2% on silver and gold jewellery. For orders under £1,000 no formal proof of origin is needed. Every rule below has an official source and date.
Calculate your own order for Australia → UK
Quick answer
- £135 or less, not a gift: no customs duty; VAT is in the price you paid. No bill from Royal Mail or the courier is expected.
- Over £135, made in Australia: 0% duty if the trade-deal preference is claimed on the UK import declaration, plus 20% VAT and the carrier's fee. Under £1,000 no formal proof of origin is needed; above that the invoice needs a declaration of origin from the exporter or producer.
- Over £135, preference not claimed or not made in Australia: the normal UK duty for the product plus 20% VAT. Loose opals, skincare, essential oils, candles, paintings and books are 0% anyway, so you pay VAT only.
- Gifts from family or friends in Australia: no VAT up to £39.
Orders of £135 or less
For consignments worth £135 or less (goods value, excluding transport if shown separately), the overseas seller must charge UK VAT at the point of sale and register for UK VAT. If the sale goes through an online marketplace, the marketplace does this instead. No import VAT is charged at the border. UK £135 VAT rule for overseas sellers
When goods outside the UK in a consignment of £135 or less are sold through an online marketplace to a customer in Great Britain, the marketplace is liable for the UK VAT and charges it at the point of sale. Marketplaces are also liable for VAT on goods of any value that are already in the UK when an overseas business sells them through the marketplace.
The £135 limit applies to the value of the whole consignment, not to each item. The value is the price of the goods, without transport or insurance (unless included in the price and not shown separately on the invoice) and without other identifiable taxes and charges. Unless items are sent individually, add their values together. If you change the value so that the consignment goes above £135, you may owe import VAT and customs duty instead and have to adjust the VAT you already accounted for.
Non-excise goods worth £135 or less pay no UK customs duty. Above £135, duty depends on the type of goods and where they come from, and is charged on the price plus postage, packaging and insurance. VAT paid to the delivery company is charged on the goods, postage, packaging, insurance and any duty.
Example: a £40.00 cotton T-shirt made in Australia, sent by post to a buyer in Great Britain.
| Where you bought it | UK VAT 20% | Customs duty | Pay at the door | Try it |
|---|---|---|---|---|
| Bought on eBay, Amazon, Etsy or another marketplace | £8.00 (in the price) | £0.00 | £0.00 | Open in calculator |
| Bought from an Australian shop's own website (seller registered for UK VAT) | £8.00 (in the price) | £0.00 | £0.00 | Open in calculator |
The £135 limit is for the whole order in one parcel, not each item. If a seller has not charged UK VAT, check the bill from the delivery company before you pay it.
Orders above £135 and the UK–Australia trade deal
Above £135, normal import VAT and customs duty apply at the border, paid by the buyer (DDU) or prepaid by the seller (DDP).
UK standard VAT rate is 20%, with a 5% reduced rate and 0% for e.g. most children's clothes and books.
The UK–Australia free trade agreement has applied since 31 May 2023. The UK Trade Tariff lists a 0% tariff preference for goods originating in Australia on every product line we checked, including wool jumpers, cotton T-shirts, swimwear, stoneware, silver and gold jewellery and leather wallets, which otherwise pay 2% to 12%. The preference is only for goods made in Australia under the agreement's rules of origin, and it must be claimed on the UK import declaration.
Normal UK duty (if the preference is not claimed, or the goods are not of Australian origin) on the lines we checked: 12% on wool jumpers under 600 g, cotton T-shirts and women's synthetic swimwear, 4% on stoneware tableware, 2% on silver and gold jewellery and leather wallets, and 0% on worked opal, skin care, essential oils such as tea tree oil, candles, paintings and books.
Example: one item worth £200.00 made in Australia, sent by courier to Great Britain, with the buyer paying on delivery (DDU). VAT is 20% on the price plus duty. The courier's own fee is extra.
Codes and rates from the UK Trade Tariff (HM Revenue & Customs / Department for Business and Trade (UK Trade Tariff), checked 4 Nov 2026, origin Australia). Duty and VAT are worked out on the item price only, as if shipping were free; in practice they are charged on the price plus postage, packaging and insurance. In the calculator, tick "preferential origin" for the FTA rate. Heavy wool jumpers (600 g or more) have a different code (10%), and your product may too: check it in our HS code lookup links.
Getting the 0% rate on a parcel
To claim the 0% rate, the UK importer declares that the goods originate in Australia, based on a declaration of origin from the Australian exporter, producer or their authorised representative (no set format; on the invoice or another commercial document) or on the importer's own knowledge backed by documents. For UK imports valued in total under £1,000, no formal proof of origin is needed if the goods are declared as meeting the origin rules, unless the order is split into a series of imports to get round the rule. A claim can also be made after import, within 3 years.
A preferential rate is only given if it is claimed on the UK import declaration; if it is not claimed, the normal rate of duty is charged. The importer must keep the declaration, the proof of origin and supporting records for at least 4 years, and duty already paid can be claimed back if a valid proof of origin is obtained later.
- Check the item is made in Australia under the agreement's rules of origin. "Ships from Australia" is not enough: a jumper knitted in China or a phone case made in Vietnam pays the normal UK rate (see China to UK customs charges).
- Sellers: put "Country of origin: Australia", a precise description and the UK commodity code on the customs form. For orders of £1,000 or more, add a declaration of origin to the invoice; there is no set wording, but it must say the goods originate under the UK–Australia agreement and identify them.
- Buyers: the preference is claimed by whoever makes the UK import declaration, usually the courier. If a courier's bill shows duty on an Australian-made item over £135, ask before paying whether preference was claimed. If you paid it, a claim can still be made within 3 years.
Coming change: duty on parcels under £135
The UK will remove the customs duty relief for consignments of £135 or less, so these parcels will pay normal customs duty. The change starts on a day set by HM Treasury, by October 2028 at the latest (brought forward from March 2029 on 23 June 2026). Until then, the relief still applies.
How preference will be claimed on low-value parcels once this happens is not yet set out. We will update this page and the change log when it changes.
Paying the bill, gifts and refunds
If you have to pay VAT, duty or charges on a parcel from abroad, Royal Mail, Parcelforce or the courier sends you a bill stating exactly which fees to pay. They normally hold the parcel for about 3 weeks; if the bill is not paid by then, the parcel goes back to the sender.
When the buyer pays on delivery, Royal Mail charges an £8 handling fee and Parcelforce £12 (£25 for goods over £900). Couriers charge their own fees.
No VAT is charged on gifts worth £39 or less. A gift must be described as a gift on the customs form, be for a birthday, anniversary or other occasion, be sent between individuals (not companies) and be for personal use. Gifts over £39 sent by someone else pay VAT to the delivery company. Several gifts in one parcel each get the allowance if they are for different people, listed with their own values and wrapped individually. China to UK customs charges
To reclaim VAT or customs duty after returning goods or being charged too much, use form BOR 286 if Royal Mail or Parcelforce delivered the parcel, or form C285 for any other courier or freight company.
For sellers in Australia shipping to UK buyers
There is no turnover threshold for overseas sellers: you must register for UK VAT, whatever your turnover, if you and your business are based outside the UK and you supply any goods or services to the UK (or expect to in the next 30 days). The £90,000 threshold applies to UK-based businesses. An overseas business that still supplies the UK cannot ask to cancel its registration just because its turnover falls below £88,000.
B2B sales to a UK VAT-registered customer who gives their VAT number use the reverse charge, so the seller does not charge VAT.
Etsy's international shipping help page lists DHL and TNT Australia (FedEx) as commonly used DDP carriers for sellers in Australia, and SendNow by Asendia and ShipStation as recommended third-party shipping services.
- Selling on eBay, Amazon or Etsy? The marketplace charges UK VAT on orders of £135 or less. Selling on your own website? You need a UK VAT registration to charge it: see the UK £135 VAT rule for overseas sellers.
- For orders above £135, decide who pays VAT (and any duty): the buyer on delivery (DDU), or you, built into your price (DDP). See DDP vs DAP.
- Fill in every customs form fully: see how to fill in CN22 and CN23. Selling opal or silver jewellery? See jewellery import duty; art and prints: art import duty.
Also selling from Australia to the US? See Australia → US: the 12.5% Section 301 duty. To the EU? See Australia → EU: the €3 duty and normal EU duty (no FTA in force yet). Goods made in South Korea or Japan? See Korea → UK and Japan → UK. Made in New Zealand (0% under the UK–New Zealand FTA)? See New Zealand → UK. Selling the other way, from the UK to Australian buyers? See UK → Australia customs charges. Made in Thailand (no UK trade deal)? See Thailand → UK. Made in Türkiye or Vietnam (0% under UK FTAs)? See Türkiye → UK and Vietnam → UK. Returning an order? See international returns and duty refunds. We record every rule change in the change log.
This page is general information, not legal, tax or customs advice. Rules in Northern Ireland are different for goods from outside the UK and the EU. Whether goods qualify for preference depends on the product-specific rules of origin in the agreement. See the disclaimer.
Sources for this page
- VAT and overseas goods sold directly to customers in the UK, HMRC / GOV.UK. Accessed 26 Oct 2026. Verified
- VAT and overseas goods sold to customers in the UK using online marketplaces, HMRC / GOV.UK. Accessed 26 Oct 2026. Verified
- Tax and customs for goods sent from abroad (parts: Tax and duty; Gifts), GOV.UK. Accessed 3 Nov 2026. Verified
- Reforming the customs treatment of low value imports into the UK (policy paper, 13 Jul 2026), HM Treasury / HMRC. Accessed 29 Oct 2026. Verified
- Government backs high street with acceleration of cheap import reforms (23 Jun 2026), GOV.UK. Accessed 11 Nov 2026. Verified
- VAT rates, GOV.UK. Accessed 20 Oct 2026. Verified
- UK Trade Tariff: commodity measures for imports from Australia, codes 6110119000, 6109100010, 6112419000, 6912002390, 7113110000, 7113190000, 4202310090, 7103990000, 3304990000, 3301294900, 3406000000, 9701910000, 4901990000, HM Revenue & Customs / Department for Business and Trade (UK Trade Tariff). Accessed 4 Nov 2026. Verified
- UK-Australia free trade agreement: origin status and reduced rate of customs duty, Department for Business and Trade / GOV.UK. Accessed 4 Nov 2026. Verified
- UK-Australia FTA Chapter 4: Rules of Origin and Origin Procedures (web version), Department for Business and Trade / GOV.UK. Accessed 4 Nov 2026. Verified
- Pay less Customs Duty on goods from a country with a UK trade agreement, HM Revenue & Customs / GOV.UK. Accessed 29 Oct 2026. Verified
- Pay a fee (customs charges), Royal Mail. Accessed 5 Nov 2026. Verified
- Pay a customs charge for parcel deliveries, Parcelforce Worldwide. Accessed 20 Oct 2026. Partly verified
- Register for VAT (when to register, including businesses based outside the UK), HMRC / GOV.UK. Accessed 26 Oct 2026. Verified
- Information for Managing International Shipments, Etsy Help. Accessed 10 Nov 2026. Verified
Rules change often: the latest change we tracked was on 10 Nov 2026 (US: the 178 China Section 301 product exclusions are extended to 9 January 2027). Alerts send one short email, with the source, only when a rule changes on a route you pick.