What is the £135 threshold?

For consignments of goods with an intrinsic value of £135 or less, UK VAT is collected by the seller at the point of sale rather than at the border, and no customs duty applies. Above £135, both import VAT and any customs duty are collected on import.

What rate is UK import VAT?

The standard UK VAT rate of 20% applies to most goods. A reduced 5% rate or 0% rate applies to specific categories such as children's clothing, books and some energy products. This tool defaults to 20%.

How is the VAT base worked out?

Import VAT is charged on the customs value (goods plus shipping plus insurance, the CIF value) PLUS any customs duty. So duty is added first and VAT is then charged on the duty-inclusive total.

Is customs duty always charged above £135?

Duty applies above £135 but the rate depends on the commodity code, and many goods carry a 0% duty rate or qualify for preferential rates under a trade agreement. Check the UK Integrated Online Tariff for the exact rate for your product.

Does this include courier handling fees?

No. Couriers such as Royal Mail, DHL or FedEx add a clearance or handling fee on top of the tax and duty, typically a few pounds. The figures here cover the government charges only — add the carrier fee separately.

UK Import VAT Calculator

A UK import VAT and duty calculator for shoppers and e-commerce sellers bringing goods into the United Kingdom. It applies the standard 20% import VAT to the customs value, handles the pivotal £135 consignment threshold — below which VAT is collected by the seller at checkout rather than at the border — and estimates the customs duty that applies to higher-value parcels.

How it works

The UK charges import VAT on the CIF value (goods plus shipping plus insurance) and adds VAT on top of any customs duty. The £135 rule changes who collects the VAT:

cif      = goods + shipping + insurance
if goods <= 135:   seller charges 20% VAT at point of sale; no border duty
if goods >  135:   duty = cif * dutyRate
                   vatBase = cif + duty
                   importVAT = vatBase * 0.20
landed   = goods + shipping + insurance + duty + importVAT

The £135 figure is the intrinsic value of the goods (excluding shipping and insurance). At or below it, no customs duty is due and the overseas seller is responsible for charging UK VAT at the till. Above it, the parcel is cleared at the border with both import VAT and any duty payable.

Example and notes

A £200 camera with £15 shipping and a 2% duty rate: CIF is £215; duty is £4.30; VAT at 20% on £219.30 is £43.86; the landed total is £263.16 before the courier’s handling fee.

A £100 parcel falls under the threshold — no border duty, and the seller should already have added £20 of UK VAT at checkout, so nothing extra is collected on delivery. Real duty rates depend on the commodity code and origin; check the UK Integrated Online Tariff. Everything here is computed in your browser.