Shipping parcels from 
China to the 
UK: what taxes apply to parcels worth GBP 135 or less? in detail
Today, consignments of non-excise goods worth GBP 135 or less are free of customs duty (alcohol, tobacco and other excise goods excluded), but VAT still applies at the rate for the goods (standard rate 20%; some goods are reduced- or zero-rated). The seller or online marketplace collects it at the point of sale, not at the border. Above GBP 135, normal import VAT and customs rules apply; any duty depends on the goods, origin and available relief. The government has announced reform of the GBP 135 duty relief, to be implemented no later than October 2028 on a date HM Treasury will set; check the implementing legislation. Rules for Great Britain and Northern Ireland can differ; this page covers Great Britain.
- Applies to
- Postal or courier parcels sent from China to consumers in Great Britain (Northern Ireland rules to be checked separately).
Dear friend,
Welcome! This letter sets out what you need to know, plainly and in order.
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 (standard 20%; some goods reduced or zero) | In force | HMRC: VAT and overseas goods sold directly to customers in the UK |
| Over GBP 135 | Depends on classification, origin and relief (UK Global Tariff) | Import VAT dealt with at the border | In force | Same |
| Reform of GBP 135 duty relief | Duty may apply at GBP 135 or less too | New low-value import declaration, including joint liability for a "fiscal representative" | Announced, not yet in force (by October 2028; implementing legislation to check) | UK government response, 13 July 2026 |
| Gifts between private individuals, GBP 39 or less | Relief kept after the reform (government wording: "will maintain the relief on non-commercial imported consignments… sent by one private individual to another valued at £39 or less") | — | Government statement; check final legislation | UK consultation on low-value imports (excerpt) |
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 consumers in Great Britain from your own site: for orders of GBP 135 or less you must register for UK VAT yourself and charge VAT at the rate for your goods (20% for most).
- Check which VAT rate applies to your goods; if one consignment exceeds GBP 135, check duty by classification 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
- Special duties or trade-remedy measures on Chinese goods: not verified in this review; check the applicable tariff.
- Northern Ireland rules: not covered on this page.
- 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.
Sources for this letter
Wishing you good business,
The mouwise team
Checked 2026-10-26
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