Brexit – What you need to know
Import and Exports Rules, Responsibilities and Taxes
Brexit - everything you need to know when sending or receiving parcels:
from Customs Declaration to Customs Duty and Import VAT
1st January 2021 marks the end of the transition period for Brexit and the implementation of the UK-EU agreement.
What you need to know when you are sending or receiving parcels between United Kingdom and Europe
- You must ensure that all items, including gifts and goods for personal use, have a Customs Declaration. Without a Customs Declaration your goods can be confiscated.
- Be prepared to pay additional taxes: Customs Duty, Import VAT, Extra Commercial Handling Fees, depending on the value of your items, the type and the reason for import & export.
- The transit time will be slightly longer due to Customs procedures.
- New set of rules regarding the types of items that can be imported & exported between United Kingdom and European countries
- The new rules apply for all items: for personal used, new or old, commercially bought or homemade
Top 3 things to know - Summary Information
Important information when sending goods to the United Kingdom
- Gifts up to the value of £39 are exempt from Import VAT and Customs Duty
- Good up to £135 are exempts from Customs Duty
- Multi-gift packages containing more than one gift and clearly intended for several people, the £39 VAT relief applies to each individual person
Important information when sending goods to Europe
- Customs Duty is not due for goods, provided directly to the buyer when their value does not exceed 150 Euros.
- The Import VAT rate is the one applicable in the country where the goods are being delivered.
- VAT is not due when the total value of all goods in a consignment (value not inclusive of customs duties or transport costs) is less than a threshold. The threshold may vary from 10 Euros to 22 Euros, depending on the EU country.
Sending Items from Europe to United Kingdom
All goods sent from any EU country are considered imports according to the UK Law, are subject to taxes and have to have a Customs Declaration.
Envelopes, Documents and Postcards are generally exempt from import duties.
Customs Declaration
The sender must complete a Customs Declaration, form CN22 or CN23 depending on the value of the goods. The declaration has to be fixed to the package and has to contain a description of the goods, their value and if they are gifts or commercial items.
Responsibility of the Customs Declaration:
When goods are being sent to the UK from any European country the receiver of the goods is considered the importer and is responsible for the information stated on the Customs Declaration.
It is the receiver responsibility to ensure that the sender completes the Customs Declaration in full and accurately.
The Goods without a Customs Declaration or with information missing or inaccurate can be delayed during Border checks, can be seized or returned to the sender.
Taxes that need to be paid for goods entering UK
The goods arriving in UK the receiver has the responsibility to pay a range of taxes.
The taxes have to be paid for all goods received as gifts or acquired as commercial items, new or used, that are for private use or for re-sale.
Import VAT is being paid for Gifts over £39 and Commercial Items over £135. This is collected by the mailing or courier company on behalf of HMRC. The standard items will be taxed at the same rate as local VAT- currently at 20%.
Customs Duty is being paid for Gifts and Commercial Items over the value of £135. The items will be taxed up to 25% depending on the item description, price and the country of origin. This is collected by the mailing or courier company before the goods are being release to the receiver.
(**)For Gifts with a value under £630, a flat rate for custom duty of 2.5% will be applied, only if this percentage is most favourable to the recipient.
Excise Duty is applicable to alcohol and tobacco.
Please note that majority of courier companies do not accept this type of goods.
Additional Charges are commercial charges set-up by mailing and courier companies to cover the additional cost for custom declaration and imports requirements. Different companies have different price structures.
Below some examples: Royal Mail: £8 – £15, DHL: 2.5% of the value, minimum £11
Taxes for GIFTS
>> Import VAT – NO
>> Customs Duty – NO
>> Additional fees – maybe
>> Customs Declaration – YES, form CN22
>> Import VAT – YES
>> Customs Duty – NO
>> Additional fees – maybe
>> Customs Declaration – YES, form CN22
>> Import VAT – YES, 20%
>> Customs Duty – YES, 0-25% depending on the custom clasification
>> Additional fees – maybe
>> Customs Declaration: YES, form CN22 for goods up to £270, form CN23 for goods over £270
What is the value for gifts for Custom Duty and Import VAT
>> Value declared on Customs Declaration
>> Any local taxes
>> Value declared on Customs Declaration
>> Postage, packaging, insurance
Note: applicable to all Goods over £39
Taxes for COMERCIAL ITEMS
>> Import VAT – NO
>> Customs Duty – NO
>> Additional fees – maybe
>> Customs Declaration – YES, form CN22
>> Import VAT – NO
>> Customs Duty – NO
>> Additional fees – maybe
>> Customs Declaration – YES, form CN22
>> Import VAT – YES, 20%
>> Customs Duty – YES, 0-25% depending on the customs classification
>> Additional fees – maybe
>> Customs Declaration: YES, form CN22 for goods up to £270, form CN23 for goods over £270
What is the value for commercial items for Customs Duty and Import VAT
>> Value declared on Custom Declaration
>> Any local taxes
>> Postage, packaging, insurance
Note: applicable to all Commercial Items over £135
>> Value declared on Custom Declaration
>> Custom Duty
>> Postage, packaging, insurance
Note: applicable to all Commercial Items over £135
What is the difference between a Gift and a Commercial Item?
Goods can be considered gifts if they meet all the below criteria:
>> Are declared as gifts on the Customs Declaration
>> Are been send from a private person outside the UK to a private person in UK
>> There is no commercial trade element
>>The gift has not been paid directly or indirectly by anyone in the UK
Multi-gift Packages
Multi-gift packages containing more than one gift and clearly intended for several people, the £39 VAT relief applies to each individual person, provided the goods are:
>> individually wrapped
>> specifically addressed to them
>> declared separately on the customs declaration
>> within the allowances specified
>> marked with the price for each individual item on the declaration
If more than one individual package is addressed to a particular person, the value of the goods will be added together. If the total value exceeds £39, Import VAT will be charged and, if the value exceeds £135, Customs Duty may also be due.
Sending Items from UK to Europe
All items send from UK to any European country are considered exports – imports and are subject to Customs Duty, Import VAT and Additional Governmental taxes and Handling fees. The taxes being paid by the recipient will depend on the country they are sent to, the value of the item and whether it is a gift or commercial goods.
Customs Declaration
The sender must complete a customs declaration depending on the value of the goods: form CN22 if the value of the items is below £270, form CN23 if the items are over £270.
The declaration has to be fixed to the package and has to contain a description of the goods, their value and if they are gifts or commercial items.
Responsibility of the Customs Declaration:
When goods are being sent from the UK to any European country the receiver of the goods is considered the importer and is responsible for the information stated on the customs declaration.
It is the receiver responsibility to ensure that the sender completes the Customs Declaration in full and accurately. The Goods without a Customs Declaration or with information missing or inaccurate can be delayed during Border checks, can be seized or returned to the sender.
How to fill the Customs Declaration
>> Fill the Customs Declaration in legibly, with as much information as you can, to avoid delays in your items being received.
>> Fill in the name and address in block capitals
>> Make sure you choose the right type of shipment: gifts and commercial items are being taxed differently in the European countries
>> Be as clear and detailed about the contents of your item as you can – it will help avoid delays or customs officials having to open your item
>> You need to know the total gross weight, including packaging
>> You need to fill in the HS tariff codes only if you a business and you are sending commercial items
Taxes that need to be paid for goods entering EU countries
For all goods sent from UK to any EU country, the receiver has the responsibility to pay a range of taxes.
The taxes have to be paid for all goods received as gifts or acquired as commercial items, new or used, that are for private use or for re-sale.
Import VAT is being paid for goods with a declared value of up to 22€. This is collected by the mailing or courier company on behalf of each country tax authority. The standard items will be taxed at the same rate as local VAT- each EU country has different VAT percentages.
Customs Duty is being paid for all items with a declared value over 150€. The items will be taxed up to 25% depending on the item description, price and the country of origin. This is collected by the mailing or courier company before the goods are being release to the receiver
Excise Duty is applicable to alcohol and tobacco.
Please note that majority of courier companies do not accept this type of goods.
Depending on the country you are sending the goods, the recipient might be asked to pay Governmental Taxes.
Additional Charges are commercial charges set-up by mailing and courier companies to cover the additional cost for custom declaration and imports requirements. Different companies have different price structures.
Below some examples: Royal Mail: £8 – £15, DHL: 2.5% of the value, minimum £11
Taxes for GIFTS & COMMERCIAL ITEMS
>> Import VAT – NO
>> Customs Duty – NO
>> Additional fees – maybe
>> Customs Declaration – YES, form CN22, completed by the sender
Note: Exempt from Import VAT and Customs Duty until 1st July 2021.
(*) The exempt between €10-€22 depending on the EU country
>> Import VAT – YES
>> Custom Duty – NO
>> Additional fees – maybe
>> Custom Declaration – YES, form CN22, completed by the sender
>> Import VAT –YES
>> Custom Duty – YES
>> Additional fees – YES
Custom declaration: YES, Form CN22 / CN23 completed by the sender
What is the value for gifts for Custom Duty and Import VAT
>> Value declared on Customs Declaration
>> Any local taxes
>> Insurance and shipping cost
>> Value declared on Customs Declaration
>> Postage, packaging, insurance
Relevant external resources
- European Commisision - Buying goods online coming from a non-European Union country
- UK -HM Revenue & Custom - Notice 143: a guide for international post users
- ANAF - Brexit impact on commercial operator
- European Commision - New form of custom declaration for low value consignments
- Customs Declaration CN22
- Customs Declaration CN23
IMPORTANT: the information presented here does not represent legal or commercial advise and is considered for general purpose.
The information presented here is for private individuals. If you are a company looking to export / import goods to and from Europe please make sure you are complying with commercial rules and regulations.