UK VAT after Brexit
After leaving the EU, the United Kingdom applies its own import VAT and customs duty. For Alibaba buyers shipping to a UK address, the rules are now distinct from the EU’s.
| Customs value | Customs duty | Import VAT |
|---|---|---|
| Under £135 | None | 20% (collected at point of sale) |
| £135 and above | By HS code | 20% (paid at the border) |
Postponed VAT accounting
Standard UK import VAT is 20%. Since 2021 most businesses use postponed VAT accounting, which lets you account for import VAT on your VAT return instead of paying it at the border — improving cash flow. Compare this with the bloc next door in The EU customs union, or the US approach in Importing to the United States.