Shipping parcels from China to the UK: is there tax under GBP 135?
Answer
Today, consignments worth GBP 135 or less are free of customs duty, but 20% VAT still applies. The seller or online marketplace collects it at the point of sale, not at the border. Above GBP 135: import VAT is collected at the border and duty is charged under the UK Global Tariff. The government has confirmed it will end the GBP 135 duty relief; HM Treasury will set the start date, no later than October 2028.
- Applies to
- Postal or courier parcels sent from China to individuals in the UK.
Rules at a glance
| Value | Duty | Who collects VAT, and when | Status | Source |
|---|---|---|---|---|
| GBP 135 or less | None | Seller or marketplace, at the point of sale | In force | HMRC: VAT and overseas goods sold directly to customers in the UK |
| Over GBP 135 | UK Global Tariff | Import VAT at the border | In force | Same |
| GBP 135 duty relief ends | Duty applies below GBP 135 too | New low-value import declaration, including joint liability for a "fiscal representative" | Decided, not yet in force (by October 2028) | UK government response, 13 July 2026 |
What you can do yourself
- Selling on a marketplace: for orders of GBP 135 or less the platform usually collects VAT for you. Check the VAT settings in your seller account.
- Selling directly to UK consumers from your own site: for orders of GBP 135 or less you must register for UK VAT yourself and charge 20% in the price.
- Quote prices as "price includes 20% VAT"; if one consignment exceeds GBP 135, add duty as well.
- Watch for the Treasury's start date and build duty into your prices before it arrives.
When to use a licensed professional
- If you need to register for UK VAT, or are unsure whether you are the party "selling to UK customers", talk to a UK tax adviser or accountant.
- If you are asked to act as a "fiscal representative", or receive an HMRC demand for tax, talk to a UK customs agent or tax lawyer.
Check before you pay, and warning signs
- If someone offers to handle VAT registration, check their UK professional qualifications, which returns the fee covers, and the annual cost.
- "Small parcels don't pay VAT" or "just use someone else's VAT number" are warning signs.
Unknowns
- Any extra special duty on Chinese goods: none found this time.
- Exact start date for ending the duty relief: waiting for Treasury regulations.
- HMRC's point-of-sale VAT guidance page was not re-checked page by page this time.
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