What you pay on a parcel into Great Britain

For an ordinary purchase worth £135 or less, the seller normally collects VAT at checkout and no customs duty is due. Do not add VAT a second time to a price that already includes it. For goods above £135, allow for import VAT, any applicable duty and the carrier’s handling charge.

This guide covers purchases sent from outside the UK to England, Scotland and Wales. Northern Ireland, gifts and excise goods need different treatment. The £135 rule remains the current rule in the guidance checked on 3 October 2026; the planned reform is separate.

First check what the checkout price includes

For a qualifying consignment of £135 or less, the seller or marketplace should account for UK VAT. A listing saying “tax included” should therefore be checked against the order receipt before estimating an extra payment on delivery.

HMRC assesses the £135 limit using the goods’ intrinsic value. Separately identified transport and insurance are excluded from that test; where they are included in the price and not separately identified, they cannot simply be deducted. The test applies to the consignment, not an allowance for each item.

Being below £135 does not bypass customs checks. Incoming parcels still go through customs to check restrictions and the correct tax and duty; the threshold does not guarantee that a parcel will pass without inspection.

How an above-threshold estimate is built

Duty depends on the commodity code and any valid origin preference. When duty is due, its base includes goods and relevant transport and insurance. Import VAT then includes the customs duty in its own base. The standard VAT rate is 20%, but the correct rate depends on the goods.

Here is an illustration, not a classification or a quote. Assume £200 of goods before tax, £15 postage, no insurance, a verified 12% duty rate, 20% VAT, no preference or other charges, and Royal Mail’s ordinary £8 handling service.

Calculation	Amount
Goods + postage	£215.00
Duty: £215 × 12%	£25.80
VAT base: £215 + £25.80	£240.80
VAT: £240.80 × 20%	£48.16
Assumed carrier fee	£8.00
Extra charges	£81.96
Total including goods and postage	£296.96

Changing the duty assumption changes both duty and VAT. At a verified zero duty rate, the same purchase would have £43 VAT and, with the same £8 carrier assumption, a £266 total.

Carrier charges are a separate check

Royal Mail publishes £8 for Royal Mail products and £12 for Parcelforce products. It specifies a £25 handling charge where goods exceed £900 and a full declaration is required. These are service conditions, not a universal £8 charge on every foreign purchase.

If you return goods or think the tax is wrong

Compare the customs bill with your invoice and evidence of tax already paid. If you return goods or believe import VAT or duty was overcharged, HMRC explains how to request repayment. Start with BOR286 for Royal Mail or Parcelforce, or the C285 guidance for other couriers. Check the conditions and required evidence; rejected imports can need a different procedure. Keep invoices, charge notices and return records. Repayment is not automatic, and these tax procedures do not promise a refund of the carrier’s own fees. Ask the carrier about its refund terms.

For a new order, open the relevant Great Britain category page, check the code and origin assumptions, and confirm the carrier’s service and fees with the seller. A rate estimate does not determine the classification of an unlisted product.