EU → UK: what your British buyer pays in 2026
For parcels worth £135 or less, the seller (or marketplace) charges UK VAT at checkout and there is no customs duty for now. Above £135, the buyer or a DDP seller pays import VAT and any duty at the border. EU-made goods can usually get 0% duty under the TCA.
At a glance
| Low-value rule | ≤ £135: UK VAT charged at point of sale; seller registers for UK VAT unless selling via a marketplace Verified |
|---|---|
| Duty ≤ £135 | None for now (relief to be removed by Oct 2028) Partly verified |
| VAT | 20% standard Verified |
| Above £135 | Import VAT + duty (0% for qualifying EU-origin goods under the TCA) Verified Verified |
Worked example: €80 ceramic set + €10 shipping, sold on a marketplace
| Item | Amount | Paid when / by | Status |
|---|---|---|---|
| Item price | £67.22 | At checkout | |
| Shipping charged | £8.40 | At checkout | |
| UK VAT 20% charged at point of sale (≤ £135) | £15.13 | At checkout: marketplace collects | Verified |
| UK customs duty (low-value relief, ≤ £135) | £0.00 | At checkout: marketplace collects | Partly verified |
| Buyer pays in total | £90.76 | £90.76 at checkout + £0.00 on delivery | |
| Seller must collect & prepay | £0.00 | Duties, taxes and fees you need to build into the price | |
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.
B2B sales to a UK VAT-registered customer who gives their VAT number use the reverse charge, so the seller does not charge VAT.
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.
EU-origin goods enter the UK at 0% duty under the TCA if they meet the origin rules and you give a statement on origin. This was checked for the sample tariff lines used in our calculator.
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.
Platforms
Shopify Managed Markets stopped supporting DDU on 24 August 2026 in every market where it supports DDP, so buyers pay duties and taxes at checkout. To let buyers pay on delivery instead, you must switch Managed Markets off.
Common pitfalls
- Selling direct to UK consumers without a UK VAT registration. It is mandatory for parcels of £135 or less.
- Splitting or combining orders around £135. Above the limit the VAT treatment changes completely.
- Forgetting the statement on origin, which you need for 0% duty on parcels over £135.
FAQ
Who pays VAT on a parcel under £135 sent to the UK?
The seller charges UK VAT at checkout and pays it to HMRC, or the marketplace does it if the sale goes through one. Nothing is collected at the border. Verified
Will UK customs duty start applying to parcels under £135?
Yes. The government is removing the low-value duty relief by October 2028 at the latest. Partly 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
- Proving originating status and claiming a reduced rate of Customs Duty for trade between the UK and EU, GOV.UK. Accessed 20 Oct 2026. Partly 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
- Managed Markets is ending Delivered Duty Unpaid (DDU) support (11 Aug 2026), Shopify Changelog. Accessed 20 Oct 2026. Verified