Learn about cross-border ecommerce, shipping, and importing.
If you are looking to grow your ecommerce business into the United Kingdom (UK) , you’ve come to the right place. Keep reading to learn everything you need to know about selling goods into the UK.
Landed cost is the total price of getting a purchase to the customer's door, which includes:
Product price
Shipping
Duties
Taxes
Fees (currency conversion, carrier, broker, customs, or government fees)
The UK de minimis, tax, and duty
Term to know
CIF: CIF (cost, insurance, freight) is a method for calculating import taxes or duties where the tax is calculated on the cost of the order plus the cost of freight and insurance.
FOB: FOB (freight on board or free on board) is a valuation method for calculating import taxes or duties where the fees are calculated only on the cost of the goods sold. FOB is not calculated on the shipping, duty, insurance, etc.
Duty and tax will be charged only on imports into the UK where the total FOB value of the import exceeds the UK's minimum value threshold (de minimis), which is a duty de minimis of 135 GBP and a tax de minimis of 0 GBP. Anything under the duty de minimis value will be a duty-free import, but because the tax de minimis is zero, every import is subject to tax.
Import tax
Standard rate: 20%
Reduced rate: 5%
Applied to the CIF value of an order
Value-added tax (VAT)
A VAT of 20% is applied to all imports into the UK, and it is applied according the order's CIF value. Certain goods, such as children’s car seats and home energy receive a reduced VAT rate of 5%.
Import duty
Rates vary (usually below 10%)
Applied to the CIF value of an order
Duty charges
Duty is only charged on goods with an FOB value greater than 135 GBP.
Excise duty
Excise duty is charged a set price on alcohal on a strength and per litre basis. Tobacco products are charged a set duty on a gram and packet basis.
Landed cost examples
Below are sample landed cost breakdowns for the UK calculated using Zonos Quoter. Since the tax de minimis is 0 GBP, tax will always apply:
Landed cost for a shipment to the UK below the duty de minimis value:
Landed cost for a shipment to the UK below the duty de minimis value:
Trade agreements
The UK has at least 70 trade agreements in place that offer a zero or highly discounted duty rate for goods manufactured in participating countries.
The UK is a member of the World Trade Organization
As a member of the World Trade Organization (WTO), the UK must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.
ICS2 is a cargo information system aimed at screening shipments for security and safety prior to their arrival in, or transit through, the European Union as well as the United Kingdom.
You need to ensure that you are providing the carriers with good (not vague) package descriptions when you’re shipping a package to the EU and UK.
All air carriers, freight forwarders, express courier services, and postal operators transporting goods to or through the EU or UK by air must digitally submit advance cargo information to the EU's new customs pre-arrival security and safety program (although the UK has left the EU, it remains part of Europe’s safety and security zone).
Depending on the courier, additional shipping fees may include:
Prohibited, restricted, and controlled imports into the UK
Government agencies regulate imports.
Prohibited vs. restricted. vs. controlled items
Restricted items are different from prohibited items. Prohibited items are not allowed to be imported into a country at all. Restricted items are not allowed to be imported into a country unless the importer has approval or a special license. Controlled goods have military or national security significance.
Prohibited items:
Endangered animal and plant species
Rough diamonds
Flick and gravity knives
Indecent or obscene materials
Imitation Firearms
Nuclear materials (can only be imported with a license issued by the Office for Nuclear Registration)
Offensive weapons
Torture Equipment
self-defense sprays such as pepper and CS gas sprays
If you ship low-value imports (goods valued at or less than 135 GBP) to the UK, you need to collect the VAT on those orders, register for a UK VAT number, and remit quarterly to HMRC. Read more in Zonos' Guide to UK VAT.
United Kingdom
United Kingdom country guide
Learn about cross-border ecommerce, shipping, and importing.
If you are looking to grow your ecommerce business into the United Kingdom (UK)
, you’ve come to the right place. Keep reading to learn everything you need to know about selling goods into the UK.
Ease of importing goods score: B
Ease of doing business 4/5
Landed cost fairness 3/5
Flexibility of legal regulations 3/5
Availability and accessibility of shipping 5/5
Accessibility and variety of payment methods 5/5
Market opportunity 5/5
Key stats for the UK
How to calculate landed cost for UK imports
Landed cost is the total price of getting a purchase to the customer's door, which includes:
The UK de minimis, tax, and duty
CIF: CIF (cost, insurance, freight) is a method for calculating import taxes or duties where the tax is calculated on the cost of the order plus the cost of freight and insurance. FOB: FOB (freight on board or free on board) is a valuation method for calculating import taxes or duties where the fees are calculated only on the cost of the goods sold. FOB is not calculated on the shipping, duty, insurance, etc.
Further explanation of de minimis, tax, and duty provided below
Duty and tax de minimis
Based on the FOB value of the order
De minimis value
Duty and tax will be charged only on imports into the UK where the total FOB value of the import exceeds the UK's minimum value threshold (de minimis), which is a duty de minimis of 135 GBP and a tax de minimis of 0 GBP. Anything under the duty de minimis value will be a duty-free import, but because the tax de minimis is zero, every import is subject to tax.
Import tax
Applied to the CIF value of an order
Value-added tax (VAT)
A VAT of 20% is applied to all imports into the UK, and it is applied according the order's CIF value. Certain goods, such as children’s car seats and home energy receive a reduced VAT rate of 5%.
Import duty
Applied to the CIF value of an order
Duty charges
Duty is only charged on goods with an FOB value greater than 135 GBP.
Excise duty
Excise duty is charged a set price on alcohal on a strength and per litre basis. Tobacco products are charged a set duty on a gram and packet basis.
Landed cost examples
Below are sample landed cost breakdowns for the UK calculated using Zonos Quoter. Since the tax de minimis is 0 GBP, tax will always apply:
Landed cost for a shipment to the UK below the duty de minimis value:
Landed cost for a shipment to the UK below the duty de minimis value:
Trade agreements
The UK has at least 70 trade agreements in place that offer a zero or highly discounted duty rate for goods manufactured in participating countries.
The UK is a member of the World Trade Organization
As a member of the World Trade Organization (WTO), the UK must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.
Customs resources
The UK's Customs authority
His Majesty's Revenue & Customs (HMRC)services
Customs refund in the UK
Refunds and waivers on customs by HMRC
Shipping and compliance
Top courier services:
ICS2 is a cargo information system aimed at screening shipments for security and safety prior to their arrival in, or transit through, the European Union as well as the United Kingdom.
Depending on the courier, additional shipping fees may include:
Documentation and paperwork
Always required:
Sometimes required:
Prohibited, restricted, and controlled imports into the UK
Government agencies regulate imports.
Restricted items are different from prohibited items. Prohibited items are not allowed to be imported into a country at all. Restricted items are not allowed to be imported into a country unless the importer has approval or a special license. Controlled goods have military or national security significance.
Prohibited items:
Restricted items:
Tips for exporting from the UK
Export goods from the UK: step by step
Frequently asked questions
Do I need a UK VAT number?
If you ship low-value imports (goods valued at or less than 135 GBP) to the UK, you need to collect the VAT on those orders, register for a UK VAT number, and remit quarterly to HMRC. Read more in Zonos' Guide to UK VAT.
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