Does import duties from EU to UK feel confusing and expensive? You’re not alone. Many SMEs still compare options manually without knowing there’s a faster, smarter way. For SMEs that ship outside the EU, ParcelParcel is the shipping platform that simplifies customs paperwork, compares top couriers, and gives you full control—so you save time and money. Below, you’ll find an up-to-date overview of VAT, customs duty and the £135 rule for shipments from the EU to Great Britain (England, Scotland, Wales). Rules for Northern Ireland can differ. At the time of writing (November 2025), the £135 threshold and TCA rules described below are still in force, although the UK government has announced reviews and possible changes to low-value import rules.
Chantal has been writing about logistics topics for almost two decades and has worked for major international carriers.
Since 1 January 2021, imports into Great Britain from the EU are treated like imports from any other non-UK country. VAT is due on almost all commercial goods, and customs duty may apply depending on tariff preferences and product type.
Most goods are subject to the standard UK VAT rate of 20%, with reduced (5%) or zero rates for specific categories such as some food, books or children’s clothing.
For consignments valued at £135 or less, when goods are outside the UK at the time of sale and shipped to Great Britain:
VAT is usually charged at the point of sale and accounted for by the seller or online marketplace.
For consignments above £135, VAT is generally collected at import (the buyer or responsible party pays it on clearance).
The UK–EU Trade and Cooperation Agreement (TCA) allows 0% customs duty for qualifying goods of EU origin, as long as the rules of origin are met and a valid statement on origin is provided.
If your goods do not meet EU origin rules, duty is charged according to:
the UK Global Tariff for your HS (commodity) code, and
the customs value (which includes product price and some transport/insurance costs).
For non-excise goods with an intrinsic value up to £135, current UK policy is that customs duty is not normally charged; only VAT applies.
The UK government is reviewing this low-value duty relief. If you regularly ship low-value parcels, it’s wise to check for updates before high-volume campaigns.
Northern Ireland follows a separate framework (the Windsor Framework). In practice, this means:
EU VAT rules continue to apply for goods in Northern Ireland.
Movements between Great Britain and Northern Ireland use “green lane/red lane” concepts and specific parcel rules.
For EU to Northern Ireland shipments, treatment can differ from EU to Great Britain.
If you ship to Northern Ireland, we recommend checking case-by-case or contacting our support for up-to-date guidance.
If you’re wondering how much is import tax from EU to UK, it helps to split the cost into customs duty and import VAT.
0% duty
When your product meets EU origin rules under the TCA and you include a valid statement on origin.
Positive duty rate
When the product does not qualify as EU origin, the duty rate depends on:
your HS code (commodity code), and
the customs value (goods + certain shipping/insurance costs, and sometimes other charges).
Goods ≤ £135
For most non-excise goods under the £135 intrinsic value threshold, no customs duty is currently charged, though this regime is under review.
The standard import VAT rate in Great Britain is 20%, with reduced or zero rates for specific categories.
VAT is calculated on the VAT value, which typically includes:
the customs value of the goods,
plus shipping and insurance to the UK,
plus any customs duty, and some additional charges.
For online sales to UK consumers where the consignment value is ≤ £135, overseas sellers or marketplaces usually charge and account for VAT at the point of sale instead of at import.
Scenario 1 – zero duty under TCA
Product value (CIF to UK border): £500
Product meets EU origin rules and you include a valid statement on origin
Result:
Customs duty: 0% → £0 duty
Import VAT (20%): 20% × £500 = £100 VAT
In reality, the VAT base may include more cost elements (e.g. some transport, insurance or fees) depending on HMRC valuation rules, so the actual VAT amount could be slightly higher.
Scenario 2 – no EU origin preference, 4% duty
Same shipment, but the product does not qualify as EU origin
Assumed duty rate: 4% (for illustration only; real rate depends on HS code)
Result:
Customs duty: 4% × £500 = £20 duty
VAT base: £500 + £20 duty (and possibly some additional costs)
Import VAT (20%): 20% × £520 = £104 VAT (illustrative)
ParcelParcel helps you estimate these costs upfront, so you can price your products correctly and avoid surprise charges for your customer.
To move EU to UK shipments smoothly, you typically need:
HS code (commodity code) for each product
Incoterms (e.g. DAP vs DDP, decide who pays duties/VAT)
Statement on origin (for TCA preference, when applicable)
Commercial invoice with clear item descriptions, quantities and values
EORI numbers (EU exporter; GB importer, where required)
ParcelParcel captures this data once, checks it for common errors and passes it cleanly to the chosen courier, reducing delays, corrections and unexpected costs.
Getting Incoterms right is key to a good customer experience.
DAP (Delivered At Place)
The receiver pays import VAT/duty and local clearance fees on arrival.
Good fit if your buyer is used to handling import charges.
DDP (Delivered Duty Paid)
The sender covers import charges; the parcel arrives “all-in” for the buyer.
Ideal for a frictionless experience, but you must manage VAT/duty correctly.
With ParcelParcel, you choose the setup that fits your customer promise. We reflect your choice in labels and invoices, so there’s no confusion at delivery.
We automatically compare DHL, FedEx, UPS, DPD, DSV and Skynet, no contracts, no subscriptions.
Book in minutes, get sharp international rates, and enjoy personal support.
We help you calculate duties and VAT, generate clean customs documents, and track everything in one place.
Ready to ship smarter? Start today with ParcelParcel, no obligations, support whenever you need it.
Import tax is the combination of customs duty and import VAT:
Customs duty: often 0% if your goods meet EU origin rules under the TCA and you include a valid statement on origin. Otherwise, the rate depends on the HS code and UK Global Tariff.
Import VAT: usually 20% in Great Britain, calculated on the VAT value (customs value plus certain costs and any duty).
ParcelParcel helps you estimate these costs before you ship and set the right Incoterms to avoid surprises.
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Currently, for non-excise goods with an intrinsic value of £135 or less, UK rules generally mean:
VAT is due, but
Customs duty is not charged at import (that is the relief now under review).
Gifts and excise goods follow specific rules, and policy may change, so it’s important to check the latest guidance if low-value parcels are a big part of your business.
ParcelParcel flags these cases during booking so you can handle VAT correctly.
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To claim 0% duty under the UK–EU Trade and Cooperation Agreement, you need:
A valid statement on origin on your invoice or other commercial document.
Evidence that your product meets the rules of origin for EU origin (for example, supplier declarations, bills of materials or production records).
ParcelParcel prompts you for the correct wording and reminds you to keep the right documentation on file.
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HMRC calculates import VAT based on the VAT value of the shipment, which typically includes:
the customs value of the goods
plus shipping and insurance to the UK
plus any customs duty and some additional charges
The relevant VAT rate (usually 20% in Great Britain) is then applied to that VAT value.
Our workflow helps you capture the right cost elements so that your invoice and customs entry match, reducing the risk of corrections or extra charges.
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Choose DAP if your buyer is comfortable paying VAT/duty and clearance fees when the parcel arrives.
Choose DDP if you want your buyer to receive parcels without extra charges on delivery and you are ready to manage the import taxes yourself.
ParcelParcel supports both options and shows you the impact on price, transit time and customer experience during checkout, so you can choose what fits your brand and margins best.
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You can instantly check the shipping costs through our rate calculator. Enter the weight, dimensions, and destination country of your shipment, and you will see all available shipping options along with their respective delivery times. The calculator can be used to compare shipping rates for both export and import shipments.
If you need help calculating a shipping rate, watch the video below. Click on the 
button to play the video and the 
icon to view the video in fullscreen.
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Shipping costs are calculated based on dimensions (LxWxH in cm), weight (in kg), and the destination country. Both the actual weight (as shown on the scale) and the volumetric weight are considered.
The volumetric weight is the weight calculated based on the space your shipment occupies in the plane. The higher of the two weights (volumetric or actual weight) is used to calculate the shipping rate. You don't need to calculate this yourself; our calculator does it for you.
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You can use the discount code PP10 for 10% discount on the transportation costs of your first shipment. You can apply the discount code during the checkout process (instructions).
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Whether additional costs apply depends on whether your shipment stays within the European Union or is sent to/from a country outside the European Union. Below, you can see the additional costs for each situation.
Within the European Union
If, for example, you send a shipment from the Netherlands to Italy (within the EU), there will be an additional 21% VAT on the shipping costs.
Furthermore, if your shipment stays within the European Union, you won't have to deal with any import duties or customs clearance fees because your shipment doesn't go through customs. Please note that the European Union is not the same as Europe.
View here all the countries that are part of the European Union. For example, Switzerland is part of Europe but not part of the European Union.
Outside the European Union
If, for example, you send a shipment from the Netherlands to the United States, there will be no VAT (0%) applied to the displayed shipping rates.
However, there might be import duties levied by customs in the destination country if you send a shipment to/from a country outside the European Union. Typically, customs costs are charged to the recipient. This is known as Delivered At Place (DAP) in logistics terminology.
Customs is a government agency that levies import duties in certain cases to protect the local market. As a company, you can also ship using Delivered Duty Paid (DDP), which means any customs costs will be charged to you as the sender.
If you have any questions about this topic, feel free to contact us. Additionally, you can read everything about import duties, VAT, and the customs clearance process in this blog.
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A customs invoice is a form where all the goods you want to ship are specified. This invoice includes an English description of the goods, along with their corresponding value and weight.
The contents of your shipment must be specified per type of product you're sending to avoid delays at customs. A customs invoice is always prepared in quadruplicate in accordance with customs guidelines.
When is a customs invoice required?
A customs invoice is only required for shipments to/from countries outside the European Union (e.g., Netherlands - United States). If your shipment stays within the European Union (e.g., Netherlands - Italy), your shipment will not go through customs, and therefore, a customs invoice is not required.
Additionally, document shipments are not subject to customs, so if you're sending a document to a country within/outside the European Union, no customs invoice is needed.
Please note that not all goods can be shipped to every country. You can find a list of goods that cannot be sent via ParcelParcel on this page.
Do I need to create a customs invoice myself?
If you're sending a shipment to/from a country outside the European Union, it's mandatory to include a customs invoice with the shipment. We provide free support in creating a customs invoice.
You can easily generate a customs invoice through our shipping platform. The customs invoice will be automatically generated based on the content you specified during your booking.
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You can import just as easily as export via ParcelParcel.
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You can find a list of goods that cannot be shipped via ParcelParcel on this page.
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