Guides / £135 low-value imports · Updated 30 September 2026

UK VAT on low-value imports: the £135 rules explained

Goods sold to UK customers in consignments worth £135 or less are taxed at the point of sale, not at the border. Here is who charges the VAT, how the value is measured, and where customs duty and gifts fit in.

What the £135 rule actually changes

When goods arrive in Great Britain from outside the UK, VAT used to be collected at the border as import VAT. For low-value consignments the model is different. If a consignment is worth £135 or less, supply VAT is charged at the point of sale instead of import VAT at the border. In practice, the customer pays VAT at checkout, and the seller or the online marketplace accounts for it to HMRC.

Two details catch people out. First, the limit applies to the whole consignment that is imported, not to each item inside it. Second, the old low value consignment relief, which exempted goods worth £15 or less from import VAT, has been removed. There is no longer a small-parcel VAT exemption for sales.

How to work out whether a consignment is under £135

HMRC uses the intrinsic value of the goods. That means:

• add together the values of all items in the same consignment;
• leave out transport and insurance costs, unless they are included in the price and not shown separately on the invoice;
• leave out other identifiable taxes and charges.

If the total comes to £135 or less, the point-of-sale rules apply. Above that figure, the goods are treated as an ordinary import: import VAT and customs duty are due at the border, usually through a CDS import declaration.

Who is responsible for the VAT

Selling directly to customers

An overseas business selling consignments of £135 or less directly to consumers in Great Britain must charge and account for UK VAT at the point of sale. That generally means registering for UK VAT. GOV.UK notes exceptions where a seller supplies only zero-rated goods or sells only to VAT-registered businesses.

Selling through an online marketplace

If the goods are outside the UK and sold through an online marketplace to customers in Great Britain, the marketplace, not the seller, is liable for the VAT on consignments of £135 or less. The marketplace charges VAT at checkout and reports it to HMRC. For Northern Ireland, the same marketplace rule covers goods coming from outside both the UK and the EU.

Goods already in the UK

The £135 threshold is about imports. If an overseas seller owns goods that are already located in the UK when they are sold (for example, stock held in a UK warehouse), the seller must register and account for VAT on those sales directly to customers, whatever their value.

Business-to-business sales

Where the customer is a VAT-registered business and gives its UK VAT number, the seller does not charge VAT. Instead the invoice should state "reverse charge: customer to account for VAT to HMRC", and the buyer accounts for VAT on its own return.

When customs duty still applies

For Great Britain, GOV.UK states there is no customs duty charge on non-excise goods valued at £135 or less. Above £135, duty depends on the type of goods and where they come from, and the seller who imports them is liable for both import VAT and customs duty.

Northern Ireland has its own variation. For goods at risk of moving into the EU, GOV.UK describes a flat charge per item for non-business recipients on goods up to £135, with EU rates above that. If you ship to Northern Ireland, check the NI-specific guidance before relying on the GB rules.

Gifts are treated differently

The point-of-sale VAT rules do not apply to non-commercial goods such as gifts. Gifts follow the ordinary rules for goods sent from abroad:

• VAT is not charged on gifts worth £39 or less;
• for gifts above £39, the recipient may be asked to pay VAT to the delivery company before the parcel is released;
• excise goods sent as gifts attract duty at any value.

A parcel described as a gift must genuinely be one. A sale dressed up as a gift is still a sale, and the seller or marketplace remains responsible for VAT.

What the customer sees

For a consumer in Great Britain buying goods worth £135 or less, the process should be simple: the seller has already included VAT in the price paid. The delivery company should only ask the recipient for VAT if the item is a gift worth more than £39 or contains excise goods. If a buyer is unexpectedly charged VAT on a low-value purchase, it is worth checking with the seller how the sale was recorded.

Practical checklist for online sellers

• Calculate consignment value per shipment, not per item, and exclude separately shown transport and insurance.
• Decide whether you sell directly, through a marketplace, or both. Your VAT duties differ for each channel.
• If you sell directly to GB consumers from outside the UK, check whether you need to register for UK VAT.
• Collect and record UK VAT numbers from business customers and use the reverse charge wording on invoices.
• Keep excise goods out of the low-value flow; they are declared as standard imports.
• For consignments over £135, plan for a full import declaration, duty and import VAT. An EORI number is normally needed for that.

For a seller-focused walkthrough with worked scenarios, see this guide on how the £135 limit works for online sellers. If your shipments regularly exceed the threshold, our guide to CDS import declarations and brokers and the question of whether you need a broker are the next places to look.

Related guides

• Shipping goods from Poland to Northern Ireland: VAT, XI numbers and EORI

• Dropshipping to the UK: who pays duty and import VAT

• Duty deferment account (DDA) in the UK explained

Sources

• VAT and overseas goods sold directly to customers in the UK (GOV.UK)
• VAT and overseas goods sold to customers in the UK using online marketplaces (GOV.UK)
• Tax and customs for goods sent from abroad: tax and duty (GOV.UK)

General information, not legal, tax or customs advice. Rules change; confirm current requirements on gov.uk or with a registered agent before you ship.