United Kingdom Customs Duty

Key Takeaways

• The UK is not in the EU customs union or the EU VAT area - it runs entirely separate rules under its own post-Brexit tariff schedule (the UK Global Tariff).
• Below £135, only 20% VAT applies - no customs duty at all, unlike the EU’s new flat €3 duty on IOSS orders under €150.
• Above £135, VAT plus customs duty (roughly 0-12%, category-dependent) plus a courier clearance fee (typically £8-25) all apply.
• The UK confirmed in its Autumn Budget 2025 that the £135 relief will eventually be abolished, but has not set an effective date - treat this as coming, not yet in force.
• Northern Ireland is a genuine exception: under the Windsor Framework, goods movements there follow different rules from the rest of the UK in some cases.

How UK Import Rules Work

Since Brexit took full effect, a package from an EU seller into the UK is an import too, not a domestic delivery - the UK and EU run two completely separate customs and VAT systems now, even though both use broadly similar mechanics (a value threshold, a VAT rate, category-based duty above it).

Import VAT is a flat 20%, charged on the goods value plus shipping plus any duty owed. The £135 threshold is based on the CIF value (goods plus shipping plus insurance), and it currently works as a genuine, complete exemption from customs duty, not just a reduced rate:

• Under £135: no customs duty at all. VAT is meant to be collected at the point of sale by the overseas seller or online marketplace, similar in spirit to the EU’s IOSS system, though enforcement varies by seller and isn’t as tightly regulated as the EU’s.
• Over £135: full customs duty under the UK Global Tariff (estimated at roughly 0-12% for general merchandise, depending on product category) plus 20% VAT, plus a courier clearance fee typically in the £8-25 range depending on the carrier and parcel value.

Unlike the EU, the UK has not introduced a flat duty on low-value parcels as of this writing. HM Revenue & Customs (HMRC) administers both VAT and customs duty collection at the border.

UK-Specific Considerations

The £135 relief is confirmed to be ending, eventually. At the Autumn Budget on 26 November 2025, the Chancellor confirmed the government’s intent to end the £135 customs-duty relief entirely, following a consultation on the technical details that ran into March 2026. As of August 2026, no effective date has been confirmed publicly - secondary analysis has cited dates ranging from 2028 to 2029, but nothing is settled. This guide will update once HMRC confirms a firm date.

Northern Ireland is a genuine exception, not just a regional variation. Under the Windsor Framework (fully operational since 2025), goods moving into Northern Ireland can be subject to different rules from goods moving into Great Britain (England, Scotland, Wales), because Northern Ireland effectively remains aligned with certain EU customs and VAT rules for goods to keep the Irish land border open. A parcel addressed to a Belfast postcode can, in some cases, be treated differently from an identical parcel addressed to Manchester - if you’re ordering into Northern Ireland specifically, don’t assume the rest-of-UK rules on this page apply without checking.

Handling fees vary meaningfully by carrier. Royal Mail and Parcelforce charge their own customs handling fees (commonly cited in the £8-13.50 range for standard parcels, rising to around £25 for higher-value shipments requiring a full customs declaration), while express couriers like DHL and FedEx typically charge duties and VAT through to the customer plus their own administration fee, which isn’t a fixed published figure.

Frequently Asked Questions About Customs Duty in the United Kingdom

Is the UK the same as the EU for import purposes?

No. Since Brexit, the UK runs entirely separate import rules from the EU: its own VAT rate, its own threshold (£135, not €150), and its own tariff schedule (the UK Global Tariff, not the EU’s Common Customs Tariff).

Will the UK’s £135 exemption be removed like the EU’s was?

The UK government confirmed in its November 2025 Autumn Budget that it plans to end the £135 relief, but hasn’t confirmed an effective date as of August 2026. Until an official date is announced, the current exemption still applies in full.

Does an EU seller shipping to a UK buyer face different rules than a US seller?

No. Once a package crosses into UK customs territory from outside it, the same VAT and duty rules apply regardless of which country it came from - the EU has no special treatment under UK import rules post-Brexit.

Does ordering into Northern Ireland work differently than ordering into England, Scotland, or Wales?

It can. Under the Windsor Framework, goods movements into Northern Ireland are subject to different arrangements in some cases, to keep trade flowing across the Irish land border. If you’re shopping from Northern Ireland, check the specific rules for your order rather than assuming the rest-of-UK figures on this page apply exactly.

Why do handling fees vary so much between couriers?

There’s no single UK-wide fixed fee - Royal Mail and Parcelforce publish their own tiered charges, while express couriers like DHL or FedEx typically pass through the actual duty and VAT plus their own administration charge, which can differ by shipment value and service level.