Duty for Shipments from Europe to the UK Post-Brexit

We’ve provided a brief summary of the current situation for UK‑EU parcel shipments. Many businesses have been heavily impacted by these new rules, and small retailers in particular were caught off guard.

It will take time for everyone to adjust, but parcel shipments between the UK and EU are fundamentally different now.

Changes apply to both exported and imported goods between Europe and the UK.

The exact rules depend on several factors: the country of origin or destination, the type of goods, and the overall value of the item.

Since 1 January, VAT is collected at the point of sale rather than upon import. The UK government expects retailers shipping goods to the UK to register for UK VAT and account for it to HM Revenue & Customs.

This change has led many retailers to reconsider or cease deliveries to the UK, as the additional tax burden can be substantial.

The December trade deal between the UK and EU exempts goods from quotas and tariffs, but not from new taxes.

Since the start of the year, the UK is no longer part of the EU’s VAT regime, and a 20% VAT rate now applies to parcels valued under £135 coming from the EU. For items over that threshold, VAT is applied at import rather than at purchase.

Buyers also need to consider the “country of origin” rule. An item sold by an EU retailer may have been manufactured elsewhere, potentially incurring additional customs charges.

Some platforms, like eBay and Amazon, automatically include VAT at checkout, simplifying the process for buyers.

Many people sending parcels between Europe and the UK, as well as business owners doing trade on these routes, feared that the implementation of Brexit rules could turn things for the worst.

As the first months of 2021 have already come to an end, it seems those worries were not unfounded: both businesses and regular people have voiced frustration over the new taxation system and additional customs duties required for shipments coming from the EU.

Even though a new trade deal was agreed upon last Christmas, the transition to a post‑Brexit world has been difficult for many in the UK.

In this article, we discuss how casual parcels as well as business shipments have been affected by the new rules.