How does UK import VAT work for non-UK sellers?
Last updated: 2026-08-02·Verified: 2026-08-02
📋 Direct Answer
UK import VAT applies when goods arrive in the UK from overseas. Current rates: (1) Standard 20% on goods valued over £135, (2) 0% on goods under £135 (collected at point of sale by online marketplaces since Jan 2021). For FBA sellers: goods stored in UK warehouses attract import VAT on entry. You can defer import VAT using a Duty Deferment Account. Non-UK sellers must register for UK VAT if they store goods in the UK.
3
Requirements
20% on goods >£135
Est. Total Cost
Immediate
Timeline
Item by Item
RequiredImport VAT on Goods >£13520% of declared valueAt import
- 1Declare goods value to HMRC at import
- 2Pay 20% import VAT (can be deferred with DDA)
- 3Import VAT is reclaimable if you're VAT registered
InfoLow Value Goods <£135VAT collected at saleAt point of sale
- 1No import VAT for goods under £135
- 2Online marketplaces collect 20% VAT at point of sale
- 3If selling on your own website, you collect VAT directly
RecommendedDuty Deferment AccountFree to set up2-4 weeks
- 1Apply for a Duty Deferment Account with HMRC
- 2Defer import VAT and customs duty payment
- 3Settle monthly via direct debit
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- • HMRC VAT Notice 700
- • GOV.UK import VAT guidance
Disclaimer: This page is for informational purposes only and does not constitute legal or tax advice. Consult a professional for your specific situation.