From 1 January 2021, the collection of duties and taxes for the import of commercial goods into the UK will change with immediate effect. The value-added tax (VAT) applicable to commercial items valued at £15 - £135 entering the UK will now be expanded to £0 - £135 (inclusive), meaning the £15 lower limit is abolished. The VAT on these items will also now have to be pre-paid.
To pre-pay VAT and avoid additional costs, from January 2021 sellers will need to ensure they have:
- a GB Economic Operator Registration and Identification (EORI) number before shipping their goods
- the HS Tariff Code required to make a customs declaration and calculate duties on an import
- the customs value of goods - needed to make a customs declaration and calculate duties on import.
Please note there is no change to the current process for commercial goods >£135 and VAT or duty applicable to these items will continue to be charged to the recipient.