Online shopping from the UK after Brexit | International deliveries

VAT CHARGES

Order dispatch from the UK after Brexit: customs, duties and VAT

UK online shopping sites shipping internationally post-Brexit will not be directly facing additional charges on goods they send abroad. In most cases, the customer is liable for covering the VAT and the customs duties. At Eurosender we have gathered the necessary customs information that anyone selling online after Brexit from the UK should know about. Post-Brexit online shopping deliveries do not have to be a hurdle when you have the best courier companies and customs brokers by your side.

UK-EU

VAT on orders dispatched from the UK to Europe

Online stores selling to European customers will not be facing any direct charges on the goods they are offering unless they decide to take upon them part of the additional shipping cost and possible import fees by lowering the profit on their goods.

As of 1st of July 2021, UK sellers will have the option to charge and collect the VAT at the point of sale for goods worth up to £135 (or €150). By doing so, UK sellers exempt EU customers from paying VAT to customs in the country of importation. VAT will be then declared and paid to the respective Member State via a One-Stop-Shop. From this date on, all goods must pay for VAT as the exemption for small consignments with a value up to £15 (or €22) will no longer be valid.

EU-UK

VAT on orders dispatched from EU to the UK

Similarly to the new arrangements for VAT collection on orders dispatched to Europe, also consignments worth less than £135 (or €150) dispatched to the UK will have to option to go under a special regime. As long as the businesses selling the goods is registered in the UK for a UK VAT number, the VAT can be charged at the point of sale instead of being charged to the customer upon delivery or importation. In this case, VAT will be calculated based on the sale price of the goods rather than the import value which may include also shipping costs and other fees.
Also, in this case, the VAT exemption for goods worth less than £15 (or €22) will be abolished.

Please bear in mind that UK businesses need an EORI number after Brexit from any EU country for imports and exports.

E-COMMERCE

Guide to shipping from e-commerce post Brexit

How will Brexit affect UK online sellers?

Many people were buying products from online marketplaces from countless UK stores. Most stores will still send parcels to the EU after Brexit; however, the prices may not be as appealing. Either the customer will have to bear the additional costs or the store. Let us consider both options:

• The customer will have to pay a higher price when online shopping from the UK after Brexit. The higher price will include the new transport solution from the logistics providers the import VAT and customs duties they may have to pay upon receiving the goods. This option is favourable to the seller, but not the customer.
• The seller will have to lower the price to match the final cost of a good bought in any other European store. This means a lower net gain for the seller, which is not favourable to them, but advantageous to the customer.

As in most cases, the solutions may not be favourable to both parties and the following should be expected:

• Exporting goods from and to the EU after Brexit will not be an attractive option, and most British sellers will consider serving the UK market only.
• UK customers will consider purchasing goods from UK online marketplaces.
• Irish customers from the Republic of Ireland turning to a German, or other EU marketplace to avoid paying import VAT and customs duties for goods sold in the UK market.
• Many businesses will consider hiring customs brokers when shipping to Europe after Brexit.