Canada → UK: what your British buyer pays in 2026
The UK rules are the same as for any overseas seller. Parcels of £135 or less carry VAT at checkout. Above £135, import VAT and duty are due, and Canadian-origin goods can get preferential duty.
At a glance
| Low-value rule | ≤ £135: UK VAT at point of sale Verified |
|---|---|
| VAT | 20% standard Verified |
| Above £135 | Import VAT + duty (0% on sampled lines for Canadian-origin goods) Verified Verified |
| Buyer pays on delivery | Royal Mail £8 / Parcelforce £12 handling fee Partly verified |
Worked example: CAD 300 wool sweater + CAD 30 shipping, courier, buyer pays on delivery
| Item | Amount | Paid when / by | Status |
|---|---|---|---|
| Item price | £159.97 | At checkout | |
| Shipping charged | £16.00 | At checkout | |
| UK customs duty (10%) | £17.60 | Buyer pays on delivery | Verified |
| UK import VAT 20% | £38.71 | Buyer pays on delivery | Verified |
| Buyer pays in total | £232.28 | £175.97 at checkout + £56.31 on delivery | |
| Seller must collect & prepay | £0.00 | Duties, taxes and fees you need to build into the price | |
- Unverified Courier clearance/brokerage fee: no verified published amount, so it is NOT included. Enter your carrier's fee to include it.
Duties & VAT
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.
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.
UK customs-duty relief on consignments of £135 or less still applies today. The government will remove it (making these parcels subject to tariffs) by October 2028 at the latest; this was accelerated from March 2029 on 23 June 2026. The reform may add a fiscal-representative requirement and an administration fee.
Canadian-origin goods get 0% UK duty under the UK–Canada trade agreement on the sample tariff lines we checked, if they meet the origin rules.
Who pays
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. (sources above)
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.
Common pitfalls
- DDU parcels over £135 cost the buyer duty, VAT and a handling fee on delivery. Say so clearly in your listing.
- Claiming preferential duty for goods not made in Canada.
FAQ
Do Canadian goods pay UK duty?
Under £135, no. Above £135, qualifying Canadian-origin goods were 0% on the tariff lines we checked; other goods pay the UK Global Tariff rate. Partly verified Verified
Sources for this page
- VAT and overseas goods sold directly to customers in the UK, HMRC / GOV.UK. Accessed 20 Oct 2026. Verified
- VAT rates, GOV.UK. Accessed 20 Oct 2026. Verified
- Government backs high street with acceleration of cheap import reforms (23 Jun 2026), GOV.UK. Accessed 20 Oct 2026. Partly verified
- Reforming the customs treatment of low value imports into the UK (policy paper, 13 Jul 2026), HM Treasury / HMRC. Accessed 20 Oct 2026. Partly verified
- UK Trade Tariff (commodity API), HMRC / Department for Business and Trade. Accessed 20 Oct 2026. Verified
- Pay a fee (customs charges), Royal Mail. Accessed 20 Oct 2026. Partly verified
- Pay a customs charge for parcel deliveries, Parcelforce Worldwide. Accessed 20 Oct 2026. Partly verified