Retail markets · £135 duty relief + 20% VAT
United Kingdom
No duty at or below £135, but VAT applies from the first pound and the duty relief is under review.
Key facts
| Currency | GBP |
|---|---|
| VAT | 20% |
| De minimis | £135 per consignment for customs duty |
| VAT on low-value B2C | Collected by the seller at checkout up to £135 |
| Duty basis | Customs value, normally goods plus international freight and insurance |
| Marketplaces | Amazon UK, eBay, Etsy, TikTok Shop, Shopify |
| Last verified | 2026-10-17 |
What £135 actually buys you
The £135 limit is a customs duty relief, not a tax-free allowance. A consignment at or below £135 avoids customs duty, but VAT still applies from the first pound. Above £135, both duty and VAT apply, and the carrier may add a handling charge. Consignments are assessed individually, so splitting an order into several parcels has consequences beyond the fee.
The relief is under review. The government consulted in late 2025 on reforming the customs treatment of low-value imports, with implementation targeted by March 2029 at the latest. A seller building a long-term UK price should treat the current £135 line as temporary rather than structural.
Who charges the VAT
For business-to-consumer sales of goods valued at £135 or less, an overseas seller is responsible for charging UK VAT at the point of sale and accounting for it. There is no UK VAT registration threshold available to a non-established seller, so the obligation begins with the first sale rather than at a revenue milestone.
Above £135, the import VAT is normally collected at the border, often through the carrier, which adds a disbursement fee. That difference in collection point changes cash flow: checkout VAT is collected from the buyer immediately, while import VAT is paid by the importer and reclaimed only if it is VAT-registered and entitled to recover it.
Frequently asked questions
Is a £135 parcel free of tax?
No. It is free of customs duty, but UK VAT at 20% still applies. For B2C sales at or below £135 the seller usually collects that VAT at checkout.
When will the £135 duty relief end?
No date has been fixed. The government consulted on removal with implementation targeted by March 2029 at the latest; check GOV.UK for the current position.
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