Selling to the UK from the EU: Customs, UK VAT and UKCA

Since Brexit, the UK is a third country for EU-based brands: every shipment is an export, and every order is an import for your customer. That means customs formalities, UK VAT and, in the worst case, fees at the door that your customers weren't expecting.

For many, the market is still worth the effort: according to the Office for National Statistics, online sales accounted for 28.8% of UK retail sales in August 2026. Which platforms are worth selling on is covered in our overview of the most popular online marketplaces in the UK. This guide explains what you actually need today to sell online to the UK: EORI and customs, UK VAT, product labelling, returns, and whether to ship from the EU or store stock in the UK.

Last updated: October 2026

1. UK customs: what you need for every shipment

EORI number

An EORI number identifies your business to customs authorities and is required for customs declarations. You apply to the national customs authority of the EU country where your business is established (European Commission). If you're the importer in the UK yourself, for example because you store goods there, you also need a UK EORI number starting with GB.

Commodity code, description and value

For every shipment, customs needs a precise description of the goods, the commodity code, the value and the country of origin. For parcels, this is done with the CN22 or CN23 customs declaration, which is usually created together with the shipping label. Under EU customs rules, commercial goods worth up to €1,000 and weighing up to 1,000 kg can be declared for export without a full electronic declaration, for example orally (EU Regulation 2015/2446, Arts. 137 and 140). Exactly how this works, and which exceptions apply, is set by your national customs authority. Above that, you need an electronic export declaration, which generates the export accompanying document.

Proof of export: keeping the sale VAT-exempt

Exports to the UK are exempt from VAT in your EU country, but only if you can prove that the goods left the EU. According to the EU's Your Europe portal, this can be an invoice, a transport document or an import customs record, and insufficient documentation can cost you the exemption. For small parcels without an export declaration, posting receipts or carrier records are accepted in Germany, for example (IHK Region Stuttgart), and a copy of the CN23 declaration in France (BOFiP). Keep the documents for every shipment, as you'll also need them for returns.

Duty-free only with EU origin

The EU-UK Trade and Cooperation Agreement allows duty-free trade, but only for goods originating in the EU or the UK. What counts is where the goods were made or sufficiently processed. Simply repacking or labelling them in the EU isn't enough. You prove origin with a statement on origin on the invoice. For consignments over €6,000, you need a REX registration to do so (GOV.UK). Important for many merchants: goods produced outside the EU usually don't meet the origin rules. For consignments over £135, the UK tariff rate then applies, even if the parcel ships from Germany. Depending on the product, that rate can also be 0%.

2. UK VAT: the £135 rule explained

The standard UK VAT rate is 20%. What matters is when and by whom it's charged. That depends on where your stock is and how you sell:

The £135 refers to the value of the consignment, not the individual item. A basket with three jumpers can easily go over the limit.

What's changing

The customs duty exemption for consignments up to £135 is going away: in June 2026, the UK government brought the date forward by six months, to October 2028 at the latest (UK Parliament). Details of the new customs declaration for low-value parcels are to follow in secondary legislation (GOV.UK). For you, this means shipping lots of small parcels directly from the EU will become more complex, while a UK warehouse becomes relatively more attractive.

3. Who pays duties and taxes: DDP or DAP?

For consignments over £135, you have to decide who pays the import charges. If you ship DAP (Delivered at Place), your customer pays on delivery. On top of that, carriers charge handling fees, for example £8 with Royal Mail and £12 with Parcelforce (Royal Mail). If the customer doesn't pay, Parcelforce holds the parcel for 21 days and then sends it back (Parcelforce).

For you, that means return costs, frustration and bad reviews. If you ship DDP (Delivered Duty Paid) instead, you cover the charges and build them into your price. Your customer then gets a delivery that feels domestic.

DDP does have prerequisites: you effectively act as the importer and need a GB EORI number. You can only reclaim the import VAT if you're registered for UK VAT (GOV.UK); otherwise it becomes a pure cost. Your carrier also has to offer a DDP service.

4. Product labelling: do I need UKCA marking?

Good news first: for most products, Great Britain still recognises CE marking. The UK's UKCA marking is an alternative, not a requirement (GOV.UK). Some product groups have their own rules, so check your category.

Cosmetics are one example: a cosmetic product can only be sold in Great Britain if there is a responsible person based in the UK (UK Cosmetics Regulation, Art. 4). Without a UK partner or service provider, there's no way around it.

If you store stock in the UK, there's an additional obligation: as the importer, your name and UK postal address must be indicated. For goods from the EU, this can be shown on the packaging or in an accompanying document instead of on the product itself until the end of 2027 (GOV.UK).

5. Returns from the UK

A return also crosses a customs border, just in the other direction. If goods come back unchanged within three years, they can be re-imported into the EU as returned goods without import duties. The condition is that you can prove the original export (Union Customs Code, Art. 203). That only works with clean documentation for every shipment.

An alternative is a UK return address: your returns are then inspected there and either restocked or brought back in bulk.

6. Ship from the EU or store stock in the UK?

This is the real strategic question. Both approaches work, but for different situations:

With a UK warehouse, you import your goods in bulk instead of clearing every parcel individually. If you're registered for UK VAT, you can account for import VAT on your VAT return (GOV.UK).

How byrd helps you sell to the UK

With byrd, you store your goods in our fulfilment network in the UK and ship from there to your UK customers. Orders received before the cut-off leave the warehouse the same day. We ship with carriers including Royal Mail, DPD and Parcelforce, three of the most important parcel carriers in the UK, and returns run through our returns portal. For topics such as VAT registration, customs documentation and product compliance, we work with experienced partners like TecEx and Lizenzero.

You decide which products to store in the UK and which to ship from our warehouses in Germany or Austria. You can see stock, orders and shipments at any time in one dashboard.

Checklist: ready to sell to the UK?

• EU EORI number in place, plus a GB EORI if you import into the UK or ship DDP
• Proof of export kept for every shipment
• Commodity codes and country of origin recorded for all products
• Origin checked: which products are duty-free, which aren't?
• Decided whether you sell via marketplaces, your own shop or both
• UK VAT registration checked and applied for if needed
• Decided whether you ship DDP or DAP
• Product labelling, importer details and special rules for your category checked
• Returns process for UK customers sorted
• Decided whether you ship from the EU or store stock in the UK

Note: This article gives an overview and does not replace tax or customs advice. The rules change, so check the details for your business model with your tax adviser.

Frequently asked questions about selling to the UK

Do I need a UK VAT number to sell to the UK?
It depends on how you sell. If you sell consignments up to £135 directly through your own shop, yes. If you sell via a marketplace and ship from the EU, the marketplace charges the VAT. If you store stock in the UK, you always need to register from the first sale, even if the marketplace pays the VAT on marketplace sales.

Is there customs duty when shipping from the EU to England?
Not on consignments up to £135 at the moment, regardless of origin. Above that, goods of EU origin are duty-free under the trade agreement if you can prove their origin. Products made outside the EU are charged the UK tariff rate, which can also be 0% depending on the product.

What is the £135 rule?
For consignments up to £135, UK VAT is charged at the point of sale instead of on import, and there is currently no customs duty. The duty exemption will end in October 2028 at the latest.

Do I need UKCA marking?
Not for most products. Great Britain still recognises CE marking. Some product groups have special rules, so check your category. If you store stock in the UK, as the importer you also have to provide your name and UK address.

Who pays the customs charges, my customer or me?
You decide that with your shipping terms. With DAP, your customer pays on delivery, plus the carrier's handling fee. With DDP, you cover the charges and need a GB EORI number. DDP gives the better customer experience, but it pays off mainly if you're registered for UK VAT and can reclaim the import VAT.