Last updated: 14 October 2026
How does VAT work when you buy goods from the EU?
Since 1 January 2021, goods bought from the EU and brought into Great Britain are imports. Import VAT is due, usually at 20%, plus any customs duty. VAT-registered businesses can use postponed VAT accounting to declare and reclaim the import VAT on the same VAT return. For consignments of £135 or less sold directly to you, the EU seller may charge UK VAT at the point of sale instead. Northern Ireland follows different rules for goods from the EU.
Step by step for GB businesses
- Get a GB EORI number
2. Agree the delivery terms (Incoterms) with the supplier: who pays duty and VAT
3. Make a customs declaration, usually through your courier or agent
4. Choose postponed VAT accounting on the declaration
5. Declare import VAT in box 1 and reclaim it in box 4 of your VAT return
6. Download your monthly postponed import VAT statement as evidence
Customs duty
Goods that meet the UK–EU Trade and Cooperation Agreement’s rules of origin can be imported duty-free. The supplier must provide a statement on origin. Goods made outside the EU, even if bought from an EU supplier, may pay duty.
Low-value consignments
For goods of £135 or less (not excise goods or gifts), the seller or online marketplace charges UK VAT at the point of sale. If you give your UK VAT number, the seller doesn’t charge VAT, and you account for it under the reverse charge.
Example
A UK retailer buys €10,000 of EU-made clothes, which is £8,500 at the exchange rate, plus £300 shipping. They qualify for zero duty under the trade agreement. Import VAT is 20% of £8,800, which is £1,760. With postponed VAT accounting, it goes in box 1 and box 4, so the cash cost is nil.
Northern Ireland
Goods moving from the EU to Northern Ireland are still treated as intra-EU acquisitions under the Windsor Framework. NI businesses account for acquisition VAT on their VAT return and use the XI prefix.
Common mistakes
- Paying import VAT to a courier and losing the C79 evidence
- Not using postponed accounting and tying up cash
- Assuming EU goods are always duty-free, because rules of origin apply
- Reclaiming VAT with an invoice from the supplier instead of import evidence
Common import VAT mistakes
Don’t reclaim import VAT you paid on behalf of someone else, or VAT shown on a courier’s invoice. Use your postponed VAT accounting statement or C79 certificate. Imported goods of £135 or less sold to UK customers have different rules: VAT is charged at the point of sale, not at import.
A further example
A retailer imports goods worth £10,000 and uses postponed VAT accounting, declaring £2,000 VAT and reclaiming it on the same return.
Frequently asked questions
Do I still use box 8 and box 9?
Only Northern Ireland businesses use them for EU goods.
Can I reclaim import VAT if I’m not VAT-registered?
No. It is a cost.
What about services from the EU?
See VAT on services from abroad.
Is the process the same for the USA?
Yes. See VAT on purchases from the USA.
Related: VAT on EU sales.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT on EU imports. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
