Import duty and VAT, made simple
What you'll pay to move stock across borders, how it's worked out, and what you need to get your goods into our UK and EU warehouses without delays.
Duty and tax aren't the same thing
Both are collected by customs when goods cross a border, and both add to what your stock really costs. But they work differently.
Customs duty Border charge
A charge on goods entering a country, set by the product and where it was made. Governments use it to raise revenue and protect local industry.
- Who pays?
- The importer of record.
- How much?
- Anywhere from 0% to 20% or more, depending on the commodity code. Some goods, like alcohol, also carry excise duty.
Import VAT Sales tax
The same VAT (or GST or sales tax) you'd pay on goods bought locally, charged on imports so they're taxed the same way.
- Who pays?
- The importer of record. VAT-registered businesses can usually reclaim it.
- How much?
- The UK has rates of 0%, 5% and 20%. EU countries set their own, typically around 17% to 27%.
What customs looks at
Customs work out what you owe from your commercial invoice and shipping documents. The more accurate they are, the less room there is for delays or overpaying.
Commodity (HS) code
Classifies your product and sets the duty rate. It must match your goods description.
Customs value
The value of the goods, usually including freight and insurance to the border. Always declare the true value.
Description and origin
What the product is, what it's made of and where it was manufactured. Origin matters as much as destination.
Trade agreements
Goods made in a country with a trade deal, such as the UK–EU agreement, may pay reduced or zero duty, with proof of origin.
Incoterms
Agreed terms such as DAP or DDP that decide whether the sender or the receiver pays the duty and VAT.
Missing information
If details are missing or unclear, customs will decide for you, which can mean holds, extra checks or a higher bill.
Estimate your duty and VAT
Most countries, including the UK and EU, charge duty on the value plus freight and insurance, then charge VAT on top of that total, duty included. Try it with your own numbers.
Your estimate
Example: women's cotton T-shirts from the US into the UK at 12% duty and 20% VAT. This is an estimate only. Some countries value goods differently, and extra fees such as broker or handling charges may apply.
When you pay, and what else to budget for
Duty and VAT are normally paid before customs release your goods. Your courier, freight forwarder or customs broker can often pay on your behalf and invoice you afterwards, so check before you ship.
Carrier charges
The cost of moving your goods from A to B. Some carriers bundle duty and tax into one invoice.
Customs broker fees
The fee for clearing your goods through customs, often charged alongside any duty and VAT they pay for you.
Surcharges
Extra charges for things outside standard shipping, such as dangerous goods, oversized freight or temporary imports.
Transit insurance
Cover for loss or damage on the way. Buy it through your carrier or separately.
Getting your goods into our warehouses
If your stock is coming from outside the country, you'll need to be ready before it ships. Here's what each warehouse needs.
Importing into the UK
- A GB EORI number for the importer of record
- A commercial invoice with commodity codes, true values and country of origin for every line
- Consider postponed VAT accounting so you account for import VAT on your VAT return instead of paying it at the border
- Not a UK business? We'll need to check your VAT details under HMRC's FHDDS scheme. Read our VAT compliance policy
Importing into the EU
- An EU EORI number
- A Dutch VAT number. We can help with Limited Fiscal Representation (LFR)
- Submit a customs declaration before your stock arrives
- Our Rotterdam warehouse is bonded and AEO certified, and stock is checked in within 24 hours of arrival. How to supply into the EU
Shipping to your customers abroad
DDP or DAP?
With DDP (delivered duty paid) you pay the duty and tax, so your customer pays nothing on delivery. With DAP (delivered at place) your customer pays before they get their parcel, which can lead to refused deliveries and returns.
Low-value parcels
In the UK, VAT on parcels worth £135 or less is charged at checkout by the seller, not at the border. The EU has a similar scheme (IOSS) for parcels up to €150. The rules for low-value parcels are changing in both markets, so check the latest before you set prices.
Rules of origin
Goods made in the UK or EU can usually move between them duty-free under the UK–EU trade agreement, with the right proof of origin. Goods made elsewhere, such as in China, may pay duty again when they cross.
This guide is general information to help you plan. It isn't tax or legal advice. Rates and rules change, so always check with HMRC, the customs authority in your destination country, or your accountant before you ship.
Moving stock between the UK and EU?
We'll help you work out the best setup for your brand, from bonded storage in Rotterdam to D2C delivery across Europe.