Importing stock into the UK involves customs declarations, import duty and import VAT. All goods entering the UK from outside Great Britain must be declared to UK Border Force using a customs declaration — typically managed by a freight forwarder or customs broker on your behalf. The import duty rate depends on the commodity code (HS tariff code) of your product and the country of manufacture, and ranges from 0% for some electronics to over 12% for certain textiles and footwear.
Import VAT is charged at 20% on most goods entering the UK, calculated on the customs value plus any import duty. If you are VAT registered in the UK, import VAT is fully recoverable on your VAT return. This is why it is advantageous to complete UK VAT registration before your first stock shipment arrives — without a UK VAT number, you pay 20% import VAT with no mechanism to reclaim it. EORI numbers (Economic Operator Registration and Identification) are required for all UK importers; apply through HMRC before booking your first freight shipment.
Preferential tariff rates may apply depending on your country of origin and the applicable UK trade agreement. Goods originating in Australia, for example, qualify for reduced or zero duty under the UK-Australia Free Trade Agreement. Your freight forwarder or customs broker will advise on the correct commodity codes and whether preferential origin rates apply to your product. Providing accurate and detailed commercial invoices — including country of origin, declared value and a full product description — is essential to avoid customs delays when stock arrives at the UK border.