Do I pay VAT on UK imports under £135?

If the seller is registered for UK VAT and charges it at point of sale (most major platforms do), you pay no further VAT on import. If the seller doesn't charge it, Royal Mail/courier charges UK VAT on delivery.

How is import duty calculated in the UK?

On CIF value (Cost + Insurance + Freight to UK port) using the UKGT rate for your tariff code. Then VAT is 20% on (CIF + duty).

Are there any duty-free imports?

Yes — under FTAs (EU TCA, Australia, NZ, Japan etc.) qualifying goods enter at 0% duty with origin proof. Some UKGT lines are 0% (electronics, some pharmaceuticals). Personal gifts under £39 are duty- and VAT-free.

What's a 'tariff code'?

An 8 or 10-digit code from the UK Trade Tariff that classifies your goods and determines duty rate, licensing requirements, and VAT treatment. Use HMRC's online tariff lookup at gov.uk/trade-tariff.

Can I reclaim import VAT?

VAT-registered businesses can reclaim import VAT as input tax on their VAT return, like domestic input VAT. Use Postponed VAT Accounting (PVA) for cash flow benefit. Consumers cannot reclaim.

Why was my parcel held by Royal Mail?

Customs charges (duty, VAT, or both) need to be paid before delivery. Royal Mail sends a card or text. Pay online or at the depot to release.

Are services imports also subject to VAT?

Yes — services from abroad are subject to UK VAT under the reverse charge mechanism (B2B) or normal VAT rules (B2C). Different from goods imports — no customs duty applies to services.

Has Brexit increased import costs?

Yes for many EU imports — even with TCA's 0% duty, the UK no longer enjoys frictionless trade. SMEs face customs declarations (~£25-£50 per shipment), border delays, and indirect cost increases. UK imports from rest of world unchanged from pre-Brexit (apart from minor UKGT vs CET differences).

UK Import Duty + VAT Calculator 2025/26

UK import charges in 2025/26 (post-Brexit)

Since 1 January 2021 the UK has operated its own customs regime, replacing the EU Common External Tariff. The UK Global Tariff (UKGT) sets the base duty rates. Goods entering the UK face two charges:

Customs duty — at UKGT rates unless reduced by a Free Trade Agreement (FTA). Calculated on CIF value (Cost + Insurance + Freight to UK port).
Import VAT — 20% on (CIF value + duty). Some items have 5% reduced VAT or zero-rated (children's clothes, books, food).

FTA preferential rates: The UK has FTAs with the EU (TCA), Australia, New Zealand, Japan, Singapore, Vietnam, Norway/Iceland, plus rolled-over agreements with most EU FTA partners. To use preferential rates, goods must "originate" in the partner country (rules of origin) and you must produce evidence (Statement of Origin, Importer Knowledge declaration).

Sectors with high tariffs: Agricultural products, finished textiles, vehicles (10% MFN), some footwear (16.9%). The UKGT removed several thousand "nuisance" tariffs but kept protective rates for sensitive sectors.

De minimis and consumer imports

For consumers buying from abroad:

Up to £135: Seller charges UK VAT at point of sale (most major platforms: Amazon, AliExpress, eBay) — no further duty payable on import. Some smaller sellers may charge no VAT, in which case Royal Mail/courier charges it on delivery.
Over £135: Standard duty + VAT applies. The courier (Royal Mail, FedEx, DHL) typically collects on delivery, charging a "handling fee" (£8-£25) on top.
Gifts under £39: No VAT or duty if marked as a personal gift (excluding alcohol, tobacco, perfume — these are always taxed).

Postponed VAT Accounting (PVA): VAT-registered importers can defer VAT to their VAT return rather than paying at the border. Saves cash flow and admin. Apply via HMRC online services.

Three worked examples (UK 2025/26)

Example 1: £500 jacket from USA (no FTA)

Import duty 12%: £60. Import VAT 20% × (£500 + £60) = £112. Total charges £172. Landed cost £672 + courier handling fee (~£15-£20).

Example 2: £800 laptop from China

Computer monitors and laptops face 0% duty under UKGT. Import VAT 20% × £800 = £160. Total £160. Landed cost £960.

Example 3: £3,000 e-bike from Germany under TCA

E-bike with German origin certificate qualifies for 0% duty under EU TCA (would be 6% MFN otherwise). Import VAT 20% × £3,000 = £600. Total £600. Landed cost £3,600. Without TCA proof: £600 + (6% × £3,000 = £180) duty + VAT on duty (£36) = £816 total.

Common mistakes to avoid

Assuming all EU imports are duty-free — only goods with proper EU origin proof qualify for 0% under TCA.
Forgetting to declare gifts above £39 — Royal Mail will hold and assess.
Using the wrong tariff code — affects duty rate substantially. Use HMRC's online tariff lookup.
Not applying for postponed VAT accounting — small businesses pay VAT on import then reclaim on next return.
Believing the £135 de minimis covers VAT — it doesn't (VAT applies on all consumer imports since Jan 2021).
Confusing CIF with FOB value — UK uses CIF (includes freight to UK port).
Failing to keep import documentation — HMRC can audit 6 years back.

When to use this calculator

Use this calculator before any cross-border purchase, especially from outside the EU. Run it for each shipment when importing goods commercially. Compare TCA-eligible vs MFN scenarios — origin certification typically saves 5-15% on EU imports. Re-run when UK signs new FTAs (e.g. CPTPP, India FTA in negotiation).

Regional differences (Scotland, Wales, Northern Ireland)

UK import duty + VAT applies uniformly to imports into England, Scotland, and Wales. Northern Ireland operates under the Windsor Framework: goods moving from GB to NI may face EU customs procedures (depending on whether they're "at risk" of moving to ROI). Goods moving from non-UK directly to NI use EU customs and EU VAT rules. NI businesses use the EU XI prefix VAT number for trade with EU. This is the only material UK regional difference in VAT/customs.

Import Duty + VAT Calculator — UK 2025/26

Import Duty + VAT Calculator