EORI Numbers and Import VAT: A UK Guide for 2026

Quick answer

To import goods into the UK as a business you need a GB EORI number, which is free and identifies you to customs. Import VAT is usually charged at 20 percent. If you are VAT registered, use postponed VAT accounting to declare and reclaim that VAT on the same VAT Return rather than paying it at the border, which keeps the cash-flow effect neutral.

What an EORI number actually is

EORI stands for Economic Operators Registration and Identification. It is a unique reference that customs authorities use to identify a business that moves goods across a border. In Great Britain the number begins with the prefix "GB" and, for most VAT-registered businesses, it is built around the existing VAT number with extra digits appended.

You need a GB EORI number if your business moves goods between Great Britain and any other country, including for importing, exporting, or moving goods through customs. Sole traders, partnerships, and limited companies all qualify. Charities and other non-business movers can sometimes need one too. The number is free to apply for and is typically issued quickly, although you should allow some lead time before your first shipment.

EORI versus VAT number

These two numbers are easy to confuse because a GB EORI often contains the VAT number, but they do different jobs.

You can hold an EORI without being VAT registered, and you can be VAT registered without ever importing a single item. The interaction between them matters most when it comes to reclaiming import VAT, which we cover below.

How import VAT works

When goods enter Great Britain from outside the UK, import VAT may be due. As a rule, import VAT is charged at the rate that would apply if you had bought the same goods in the UK. For the vast majority of goods that is the standard rate of 20 percent, which remains unchanged for the 2026/27 period. Some goods are reduced-rated or zero-rated, so always confirm the rate that applies to your specific product before you budget for it.

Import VAT is separate from customs duty. Customs duty depends on the type of goods (their commodity code) and their origin, and the rate varies enormously from zero upwards. Because duty rates are item-specific and outside the scope of the figures in this guide, do not assume a rate. Look up the commodity code for your goods on the UK Trade Tariff at gov.uk, or ask your freight agent.

You can sanity-check the VAT element of a landed cost with our calculator:

What import VAT is charged on

Import VAT is calculated on the value of the goods plus any customs duty, plus certain transport and insurance costs to the point of entry. In practice this means the taxable base for import VAT is usually higher than the bare invoice price of the goods, because duty and freight are folded in. The exact build-up depends on the incoterms of your purchase, so check what your supplier price includes.

Postponed VAT accounting (PVA)

For VAT-registered importers, postponed VAT accounting is the single most useful mechanism to understand. Without it, you would pay import VAT at the border and then reclaim it weeks later on your VAT Return, tying up cash in the meantime. PVA removes that delay.

Under PVA you do not pay import VAT at the point of entry. Instead you declare the import VAT due as output tax on your VAT Return and, in the same return, reclaim it as input tax to the extent the goods are used for taxable business activities. For a fully taxable business the two entries cancel out, so the net cash effect is nil.

To use PVA you reference a monthly online import VAT statement from HMRC. That statement shows the import VAT recorded against your EORI for each month, and you use those figures to complete the relevant boxes on your VAT Return. Keep these statements as part of your records, because they are your evidence for the figures you have declared and reclaimed.

Who can reclaim import VAT

Only VAT-registered businesses can reclaim import VAT, and only insofar as the goods are used for taxable business purposes. If you are not VAT registered, import VAT is a genuine, unrecoverable cost that raises the effective price of everything you import by the VAT rate. This is the core reason many importers register for VAT voluntarily even when their turnover is well below the GBP 90,000 registration threshold.

The trade-off is that voluntary registration also brings obligations: charging VAT on your own sales, filing returns, and keeping digital records. Weigh the recoverable import VAT and input tax against the administrative burden and the effect on your pricing for non-VAT-registered customers.

When you must register for VAT

You must register for VAT when your taxable turnover exceeds the GBP 90,000 registration threshold over any rolling 12-month period, or when you expect to cross it within the next 30 days. Importing does not in itself trigger registration, but it often pushes businesses to register voluntarily so they can use PVA and reclaim import VAT.

If you are weighing up registration, model the effect on your sale prices and margins first. Our VAT calculator helps you see how adding or removing VAT changes a price, which is useful when you are deciding whether to register voluntarily.

Duty deferment and cash flow

A duty deferment account lets you delay paying customs duty and import VAT, settling the total once a month by direct debit instead of transaction by transaction. For regular importers this smooths cash flow considerably.

If you already use PVA for import VAT, the deferment account is mainly relevant for customs duty and any excise duty, since the VAT side is handled on your return. Setting up a deferment account usually requires a financial guarantee, although some businesses can be approved to operate without one depending on their circumstances and compliance history.

How import costs flow through to your tax

Import VAT, when reclaimed, is not a cost to your business and does not affect your Corporation Tax. But the other landed costs do. The price you pay for the goods, customs duty, freight, and insurance all form part of the cost of your stock or assets, and they reduce your taxable profit when the goods are sold or used.

Corporation Tax for 2026/27 is charged at 19 percent on profits up to GBP 50,000 and 25 percent on profits above GBP 250,000, with marginal relief tapering the effective rate between those two points. Bringing your landed costs into your accounts correctly therefore matters for the tax you pay on profit, not just for VAT. You can estimate the Corporation Tax on a given level of profit here:

A practical checklist before your first import

• Apply for a GB EORI number well ahead of your first shipment, as it is free and required.
• Decide whether to register for VAT, factoring in that only registered businesses can reclaim import VAT.
• If you register, set up postponed VAT accounting so you are not paying import VAT at the border.
• Look up the commodity code for your goods to find the duty rate and confirm the correct VAT rate.
• Check the incoterms of your purchase so you know what is included in the value for import VAT.
• Consider a duty deferment account if you import regularly and want to settle duty monthly.
• Keep your monthly import VAT statements as evidence for the figures on your VAT Return.

The bottom line

Importing into the UK is mostly about getting two things right. First, the paperwork: a GB EORI number identifies you to customs and is non-negotiable for moving goods. Second, the VAT mechanics: import VAT is generally 20 percent, only VAT-registered businesses can reclaim it, and postponed VAT accounting keeps the cash-flow effect neutral for those who use it.

Get the EORI in place early, decide on VAT registration with the recoverable import VAT in mind, and use PVA and, where helpful, a deferment account to protect your cash flow. The numbers for your specific goods - the commodity code, duty rate, and any non-standard VAT rate - you must look up, but the framework above is what every UK importer needs to understand before the first consignment arrives.