Importing to the UK: An essential guide

From obtaining a UK EORI number and registering for VAT to working with freight forwarders or customs agents, careful planning helps avoid costly delays, fines and compliance pitfalls.

In this short guide, our VAT Consultant, Nicola Gladwell outlines the essential first steps for overseas businesses importing into the UK successfully.
 

1. How to import to the UK

Before you start shipping goods, consider how your business will operate.

There are two common routes:

Nicola Gladwell, VAT Consultant at Rouse, comments: “Many overseas businesses start by importing and selling without a UK entity. It’s a simple way to enter the market with minimal cost and commitment. VAT registration is key here – and it applies immediately, even before hitting any turnover threshold.”

2. How to get a UK EORI number for imports

Since 1 January 2021, all businesses importing goods into or exporting goods from the UK must have a UK Economic Operator Registration and Identification (EORI) number.

• Why it matters: Your EORI number is required for customs declarations, VAT paperwork, and communication with HMRC.
• EU EORI no longer valid: EU-issued EORI numbers can no longer be used for UK imports or exports. You’ll need a UK-specific EORI that begins with “GB” (or “XI” for imports to Northern Ireland).
• How to apply: You can apply online through the HMRC website – the process usually takes less than 1 working day.

Nicola Gladwell adds: “Having the correct EORI number avoids unnecessary delays at the border. Without it, customs can’t clear your goods and your shipments may be held until compliance is proven.”

3. Import VAT and UK customs duty explained

When goods enter the UK, import VAT and (in some cases) customs duty may apply.

For consignment values of £135 or less

Where the goods are sent from abroad (as opposed to having been imported into the UK first), the seller must charge and account for VAT at the point of sale, unless the consignment is a business to business sale and the customer has given them their UK VAT registration number . Customs duty is not payable on consignments of £135 or less.

You should also note that if you are selling to UK customers via a marketplace such as eBay or Amazon, then the marketplace will be responsible for this, so a VAT registration may not be required.

For consignment values of more than £135

For consignments with a value exceeding £135, UK VAT-registered businesses can use Postponed VAT Accounting (PVA) for imports. This applies only when the UK VAT-registered business is the importer of record – not when goods are sent directly to UK consumers by post. Under PVA, instead of paying import VAT at the border and later reclaiming it on their VAT return (which can affect cash flow), businesses can just report it via their VAT return as both input and output tax in the same period.

It is important to note that when there are multiple goods in a single consignment being sent to a UK consumer, the £135 limit applies to the value of a total consignment not the separate
value of individual items that make up a consignment.

Nicola Gladwell comments: “Accounting for varying consignment values can be a challenge for businesses because different VAT rules apply depending on whether a shipment is below or above £135, requiring careful tracking, reporting, and sometimes payment. E-commerce software can often simplify this by automatically applying the correct VAT treatment and generating accurate reports.”

As part of your import process you will need to:

• Determine the correct commodity code: Used to classify your goods and calculate duty rates.
• Check duty and VAT rates: These vary by product type, origin, and trade agreements.
• Decide who acts as importer of record: This affects who is responsible for VAT and customs payments and who is entitled to recover import VAT due.
• Consider Postponed VAT Accounting (PVA): This allows you to account for import VAT on your VAT return instead of paying it at the border.

Nicola Gladwell comments: “Postponed VAT Accounting is one of the most valuable tools for cashflow management. It allows you to reclaim import VAT on the same return – avoiding any out-of-pocket payments at the time of import.”

4. How to register for VAT in the UK

If you’re importing goods into the UK to sell locally, VAT registration is mandatory, regardless of turnover. You will need to provide:

• Business details (including overseas registration information)
• Trading address and contact details
• Nature of business activities and expected UK turnover
• Proof of business identity (e.g. certificate of incorporation, directors’ ID)

Once registered, you will receive a UK VAT number, which allows you to:

• Charge VAT on UK sales (where applicable)
• Reclaim or account for import VAT via your VAT return
• Access Postponed VAT Accounting

Remember, the rules are different for non-established taxable persons (NETPs). These are overseas businesses with no fixed base in the UK. HMRC looks at where your business is genuinely managed and controlled, not just where it is legal constituted or VAT registered.

We have significant experience in assisting overseas clients with their VAT registration and our team can handle each step on your behalf.

Nicola Gladwell notes: “Even if you register a UK company for VAT, HMRC may still treat your business as non-established if all management and operations remain overseas. This affects the place of supply rules for services, so UK providers may not charge VAT to your company even though it’s UK-registered.”

5. Plan your import logistics and documentation

Seamless imports rely on accurate documentation and compliance with UK customs requirements. You will need:

• Commercial invoice – detailing value, description, and origin of goods
• Packing list – itemising contents and weight
• Bill of lading or airway bill – transport details
• Import declaration – usually submitted by your agent
• EORI number and VAT registration – clearly shown on customs paperwork

6. Banking and payment considerations

If you operate without a UK company or establishment, opening a UK bank account can be challenging. Many importers rely on international accounts, payment platforms, or UK-based intermediaries.

• Traditional UK banks may require a UK director or address.
• Fintech providers such as Wise or Revolut Business often accept overseas businesses trading in GBP.
• Specialist trade banks may assist with foreign exchange or invoice financing.

Whilst setting up a UK bank isn’t mandatory, if you later decide to establish a UK company, having a local account helps with credibility, compliance, and seamless payment handling.

7. Ongoing compliance after importing

Once your goods are in the UK and you begin trading, ongoing compliance includes:

• Filing VAT returns (usually quarterly)
• Maintaining import and sales records
• Storing invoices and customs documents for at least six years
• Monitoring your customs and VAT obligations as your business grows

Regularly reviewing your import processes with a UK accountant or VAT specialist ensures continued compliance and avoids costly errors.

Our team are able to assist with all your VAT filing and recordkeeping for your UK business activities, including setting up an accounting system to meet your UK reporting requirements.