US → UK: what your British buyer pays in 2026
On parcels of £135 or less, you (or the marketplace) charge 20% UK VAT at checkout and there is no duty for now. Above £135, US goods pay import VAT plus the UK Global Tariff rate.
At a glance
| Low-value rule | ≤ £135: UK VAT at point of sale Verified |
|---|---|
| VAT | 20% standard Verified |
| Duty above £135 | UK Global Tariff, e.g. T-shirts 12%, wool jumpers 10%, silver jewellery 2% Verified |
| Coming | Duty on parcels ≤ £135 by Oct 2028 Partly verified |
Worked example: $50 cotton T-shirt + $15 shipping, sold direct, postal
| Item | Amount | Paid when / by | Status |
|---|---|---|---|
| Item price | £37.46 | At checkout | |
| Shipping charged | £11.24 | At checkout | |
| UK VAT 20% charged at point of sale (≤ £135) | £9.74 | At checkout: seller collects and pays | Verified |
| UK customs duty (low-value relief, ≤ £135) | £0.00 | At checkout: seller collects and pays | Partly verified |
| Buyer pays in total | £58.44 | £58.44 at checkout + £0.00 on delivery | |
| Seller must collect & prepay | £9.74 | Duties, taxes and fees you need to build into the price | |
- Verified Selling direct (not through a marketplace) means you need a UK VAT registration.
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.
US-origin goods pay the UK Global Tariff third-country rate, e.g. cotton T-shirts 12%, wool jumpers 10%, silver jewellery 2%, ceramic tableware 4%, candles/books/toys 0%.
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.
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 (e.g. your own Shopify store) to UK consumers without a UK VAT number.
- Using US-only label tools that do not pass UK VAT details. Check that your label service supports UK VAT-paid shipments.
FAQ
Do I need to register for UK VAT as a US seller?
Yes if you sell parcels of £135 or less directly to UK consumers. Sales through a marketplace are handled by the marketplace. 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
- UK Trade Tariff (commodity API), HMRC / Department for Business and Trade. 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
- 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