UK Low-Value Import VAT Rules

Overseas sellers and online marketplaces must register for UK VAT and charge VAT at checkout on goods in consignments of £135 or less sent to UK consumers; marketplaces are liable for those sales and for sales by overseas sellers of goods already in the UK. Low-value consignment relief of £15 was abolished. Customs duty relief for consignments up to £135 still applies but will be removed by October 2028 at the latest. VAT-registered business buyers account through the reverse charge.

These rules make UK VAT a checkout issue for cross-border sellers and marketplaces, and the planned removal of the £135 duty relief will add customs duty to parcels by 2028. A US brand shipping direct to UK consumers must register with HMRC and charge 20 percent VAT at the sale, so parcels arrive without carrier collection fees. Many brands instead stock a UK 3PL, importing in bulk and selling domestically, a model that becomes more attractive once duty applies to every low-value parcel.

• De MinimisValue limit for duty-free imports
• Delivered Duty PaidDDPIncoterm: seller pays transport and duties
• Landed CostTotal cost to get a product ready to sell

• Brexit Customs Border2021 · Customs checks return between Britain and the EU

• EU VAT E-Commerce Package2021 · 2021 EU VAT rules for online sales and imports
• Windsor Framework2023 · UK-EU deal on goods moving from GB to Northern Ireland
• UK Plastic Packaging Tax2022 · UK tax on plastic packaging under 30% recycled content

1. GOV.UK: VAT and overseas goods sold directly to customers in the UK gov.uk
2. GOV.UK: Reforming customs rules for low value imports gov.uk