No deal guidance - import VAT on parcels you sell to UK buyers

Aug 19, 2019

VAT notice 1003 sets out how to pay import VAT on goods you sell and send to UK buyers if you are based outside the UK, if the UK leaves the EU without a deal.

If you are based outside the UK and sell parcels to UK buyers worth £135 or less, you must pay import VAT. Parcels include letters, packages, packets and any other article that could be sent by post, even if they are sent by different methods.

To pay import VAT you can either:

  • register with HM Revenue and Customs (HMRC) to report and pay the import VAT due yourself; or

  • pay a parcel operator that offers a service to pay import VAT to HMRC on your behalf

In a no-deal Brexit, the way that interest, royalties and dividends are paid between UK and EU companies may change. Tax may be deducted from some payments. HMRC are reminding interested parties to read their guidance in this area.