Answers · UK 2025/26
How does import VAT work after Brexit for UK businesses in 2026?
Since 1 January 2021, goods imported into the UK are subject to UK VAT rather than EU VAT. For goods over £135, import VAT and customs duty are payable on entry. Below £135, the overseas supplier or marketplace must charge UK VAT at the point of sale. VAT-registered importers can use Postponed VAT Accounting (PVA) to defer import VAT to their VAT return.
Full answer
Brexit fundamentally changed UK import VAT rules from 1 January 2021 when the UK left the EU VAT area. The key rules for 2026 are: **Goods above £135 imported to the UK:** - Subject to UK customs duty (where applicable) AND UK import VAT (20% for standard-rated goods) - The importer declares goods to HMRC via the Customs Declaration Service - **Postponed VAT Accounting (PVA):** VAT-registered UK businesses can account for import VAT on their next VAT return (as both output and input tax), rather than paying it upfront at the border -- a significant cash flow benefit - Non-VAT-registered importers must pay import VAT upfront as part of customs clearance **Goods below £135 imported to the UK:** - UK VAT is collected at the point of sale by the overseas seller or the online marketplace (if the seller is not UK VAT-registered) - No import VAT at the border for these low-value consignments - Applies to direct-to-consumer B2C sales **Goods from the EU specifically:** - EU goods are now treated the same as goods from any other non-UK country - The "free movement of goods" rules no longer apply - Customs declarations are required for all EU-UK commercial shipments **Northern Ireland (the Windsor Framework):** - Northern Ireland has special status -- goods moving from Great Britain to Northern Ireland for onward sale in Northern Ireland are generally treated differently; EU VAT rules continue to apply to goods in Northern Ireland that remain in the EU single market for goods - This is a complex area; businesses trading with Northern Ireland should refer to HMRC guidance on the Northern Ireland Protocol/Windsor Framework **IOSS (Import One Stop Shop -- EU to UK is NOT applicable):** The EU's IOSS simplification for low-value goods applies to goods sold into the EU, not into the UK. The UK has its own equivalent rules. **Customs duty:** Separate from VAT -- the UK Global Tariff applies to all imported goods. Many goods attract 0% duty, but some (especially from countries without UK trade agreements) attract significant duties.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.