Shipping to the UK after Brexit

From 1 January 2021, in a post-Brexit scenario, the United Kingdom is considered to be a non-EU country and, therefore, shipments of goods to this destination will be subject to customs clearance and potentially subject to taxes and duties.

Summary

What are the main rules for calculating fees and taxes in the United Kingdom for goods coming from the European Union countries in the post-Brexit period?

The main changes compared to the current situation of free movement of goods in the European Union for the post-Brexit scenario are as follows:

• All goods originating from a commercial transaction may be subject to payment of VAT and customs duties in the United Kingdom.
• For goods up to £ 135 (approx. 150 €), it will be the exporter in Portugal (or the platform / marketplace) who will declare and pay VAT directly in the United Kingdom.
• For goods over £ 135, the recipient in the United Kingdom will pay VAT and other customs duties assessed by British customs.
• The most common VAT rate in the United Kingdom (applicable to most consumer goods) is 20%.
• In the case of gifts (only applicable in the case of shipments between individuals) the limit up to £ 39 (approx. 45 €) in which no taxes or customs duties will be applied.

Tax and Duty

You’ll be contacted by Royal Mail, Parcelforce or the courier company if you need to pay any VAT, duty or delivery charges (‘handling fees’) to receive your goods.

They’ll send you a bill stating exactly what fees you need to pay.

They’ll normally hold your parcel for about 3 weeks. And if you have not paid the bill by then, your parcel will be returned to the sender.

You will not have to pay anything to the delivery company to receive goods worth less than £135 unless they’re gifts over £39 or excise goods (for example, alcohol and tobacco).

VAT

You pay VAT when you buy the goods or to the delivery company before you receive them. If you have to pay VAT to the delivery company, it’s charged on the total package value, including:

• The value of the goods
• Postage, packaging and insurance
• Any duty you owe

VAT is charged at the VAT rate that applies to your goods.

Goods worth £135 or less in total

If you bought the goods yourself and they are not excise goods, the seller will have included VAT in the total you paid.

You will need to pay VAT to the delivery company if the goods are:

• Gifts sent to you by someone else and worth more than £39
• Excise goods

Goods worth more than £135 in total

You will have to pay VAT to the delivery company either before the goods are delivered or when you collect them.

Customs Duty

You’ll be charged Customs Duty on all goods sent from outside the UK (or the UK and the EU if you’re in Northern Ireland) if they’re either:

• Excise goods
• Worth more than £135

If you’re charged Customs Duty, you’ll need to pay it on both:

• The price paid for the goods
• Postage, packaging and insurance

Type and value of goods	Customs Duty
Non-excise goods worth £135 or less	No charge
Gifts above £135 and up to £630	2.5%, but rates are lower for some goods
Gifts above £630 and other goods above £135	The rate depends on the type of goods and where they came from

You pay Customs Duty on excise goods of any value.

If you’re charged too much or return your goods

Ask for a refund of VAT or Customs Duty if you:

• Return your goods
• Think you’ve been charged too much

Download and fill in:

• Form BOR 286 if Royal Mail or Parcelforce delivered the goods
• Form C285 if a courier or freight company delivered the goods