Less Than 100 Days Until Christmas - Beware Customs Charges!

Tax and customs for goods sent from abroad

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Contents

1. Overview
2. Tax and duty
3. Documents
4. Gifts

Tax and duty

You’ll be contacted by Royal Mail, Parcelforce or the courier company if you need to pay any VAT, duty or delivery charges (‘handling fees’) to receive your goods.

They’ll send you a bill stating exactly which fees you need to pay.

They’ll normally hold your parcel for about 3 weeks. If you have not paid the bill by then, your parcel will be returned to the sender.

You will not have to pay anything to the delivery company to receive goods worth less than £135 unless they’re gifts over £39 or excise goods (for example, alcohol and tobacco).

VAT

VAT is charged on all goods (except for gifts worth £39 or less) sent from:

• outside the UK to Great Britain
• outside the UK and the EU to Northern Ireland

VAT is not charged on goods that are gifts worth £39 or less.

You pay VAT when you buy the goods or to the delivery company before you receive them. If you have to pay VAT to the delivery company, it’s charged on the total package value, including:

• the value of the goods
• postage, packaging and insurance
• any duty you owe

VAT is charged at the VAT rate that applies to your goods.

Goods worth £135 or less in total

If you bought the goods yourself and they are not excise goods, the seller will have included VAT in the total you paid.

You will need to pay VAT to the delivery company if the goods are:

• gifts sent to you by someone else and worth more than £39
• excise goods

Goods worth more than £135 in total

You will have to pay VAT to the delivery company either before the goods are delivered or when you collect them.

Customs Duty

You’ll be charged Customs Duty on all goods sent from outside the UK (or the UK and the EU if you’re in Northern Ireland) if they’re either:

• excise goods
• worth more than £135

If you’re charged Customs Duty, you’ll need to pay it on both:

• the price paid for the goods
• postage, packaging and insurance

Type and value of goods	Customs Duty
Non-excise goods worth £135 or less	No charge
Gifts above £135 and up to £630	2.5%, but rates are lower for some goods - call the helpline
Gifts above £630 and other goods above £135	The rate depends on the type of goods and where they came from - call the helpline

You pay Customs Duty on excise goods of any value.

Excise Duty

If you’re sent alcohol or tobacco from outside the UK, you’ll be charged Excise Duty at current rates.

If the goods are sent from the EU to Northern Ireland, check that the Excise Duty was included in the price. If it’s not, your goods may be seized.

It does not matter whether you buy the goods or they’re sent as a gift.

If you receive large amounts of alcohol or tobacco for your business, use the Trade Tariff to check duty rates.

Your goods can also be seized if they’re:

• spirits over 35 centilitres without a UK duty stamp
• cigarettes or hand-rolling tobacco without UK health warnings or fiscal marks

If you’re charged too much or return your goods

Ask for a refund of VAT or Customs Duty if you:

• return your goods
• think you’ve been charged too much

Download and fill in:

• form BOR 286 if Royal Mail or Parcelforce delivered the goods
• form C285 if a courier or freight company delivered the goods

Tax does have to be taxing.

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