UK Import Tax and Duty on Goods From China, Explained
When you import goods from China into the UK you may pay two things at the border: customs duty and import VAT. This guide explains how each is worked out, the rules for low-value parcels, what an EORI number is, and what a typical bill looks like.
Do you pay import tax from China to the UK?
In most cases, yes. Commercial goods arriving from China are usually charged import VAT, and many are also charged customs duty. How much you pay depends on the value of the goods, their commodity code and how they arrive. Some goods are zero-rated for VAT or carry no duty, so it is worth checking before you buy.
The two charges: customs duty and import VAT
- Customs duty is a percentage of the customs value, set by the product’s commodity code (HS code). Many goods, including a lot of electronics, carry low or zero duty, while others, such as clothing and footwear, carry higher rates.
- Import VAT is charged at the standard UK rate of 20% on most goods (some goods are charged at 5% or 0%).
Unlike the US, the UK adds freight and insurance to the goods value when it calculates duty and VAT. This is called the CIF value (cost, insurance and freight) up to the UK border.
How the UK import tax is calculated
- Customs value = price of goods + international freight + insurance.
- Duty = customs value × duty rate for the commodity code.
- VAT = 20% × (customs value + duty + any other charges up to the first UK destination).
Here is an illustration only using made-up numbers:
| Item | How it is calculated | Amount |
|---|---|---|
| Goods | Price paid to supplier | £5,000.00 |
| Freight and insurance (example) | To the UK border | £600.00 |
| Customs value | Goods + freight + insurance | £5,600.00 |
| Customs duty | Assume 4% × £5,600 | £224.00 |
| VAT base | £5,600 + £224 | £5,824.00 |
| Import VAT | 20% × £5,824 | £1,164.80 |
| Duty and VAT payable | £1,388.80 |
If you are VAT-registered you can usually reclaim import VAT, and Postponed VAT Accounting lets you account for it on your VAT return instead of paying it at the border.
The £135 rule for low-value consignments
Different rules apply to consignments with a value of £135 or less. In general, no customs duty is charged on these, and VAT is collected by the seller at the point of sale if they are registered. Above £135, duty and VAT are due when the goods are imported. Because these thresholds and rules can change, check the current GOV.UK guidance for your shipment.
What is an EORI number and do you need one?
An EORI number identifies you to customs. If you import goods commercially into the UK you generally need a GB EORI number to make customs declarations. It is free to apply for. Once you have one, your forwarder or broker can clear the shipment for you. Our team handles the paperwork for China to UK shipping, including UK import clearance.
How to keep your UK import charges under control
- Confirm the commodity code before you order, because it decides your duty rate.
- Ask your supplier for an accurate commercial invoice and packing list.
- Choose DDP shipping if you want one all-in price that covers freight, duty, VAT and delivery.
- Check whether your goods are eligible for zero or reduced rates.
- Use a forwarder who can tell you the likely duty and VAT before the goods ship.
Frequently Asked Questions
Do you pay import tax from China to the UK?
Usually yes. Commercial goods from China are normally charged import VAT, and many carry customs duty too. The amount depends on value, commodity code and shipment type.
How much is import VAT from China to the UK?
Import VAT is generally 20% of the customs value plus duty and other charges up to the first UK destination. Some goods are charged at 5% or 0%.
What is the import duty on electronics from China to the UK?
Many electronics carry zero or low duty, but it depends on the exact commodity code. Confirm the code for your product before you order.
Is there an import tax calculator for the UK?
There are online tools, but they depend on the commodity code and value you enter. A forwarder or customs broker can give a full estimate including freight, duty, VAT and fees.
Do I need an EORI number to import from China to the UK?
If you import commercially you generally need a GB EORI number to make customs declarations. It is free to apply for.
Do I pay import tax on goods under £135?
Different rules apply to consignments of £135 or less: customs duty is generally not charged and VAT is usually collected by the seller at the point of sale. Check current GOV.UK guidance for your shipment.
Related guides
This guide is general information, not legal, tax or customs advice. Rules, rates and transit times change, so confirm the details for your goods with a licensed customs broker or the relevant authority before you ship.