UK import duty and VAT on goods from China
What you actually pay at the border, how it is calculated, and why VAT-registered businesses can usually reclaim the VAT.
The two charges at the border
When commercial goods arrive from China you normally pay two things: import duty and import VAT.
Import duty is a percentage set by your product's commodity (HS) code — commonly in the 0–12% range, though some goods are higher or zero-rated. Import VAT is charged at the standard UK rate of 20%.
How it is calculated
Duty is charged on the customs value of the goods, which typically includes the product cost plus freight and insurance to the UK.
VAT is then charged on that customs value plus the duty. In other words, VAT is calculated on the goods, the shipping and the duty combined — which is why the order of the sum matters.
The £135 threshold — often misunderstood
The well-known £135 figure mainly governs how VAT is collected on low-value consignments (at the point of sale rather than at the border); it is most relevant to small e-commerce parcels.
For normal commercial bulk orders, duty and import VAT are accounted for at import regardless of value. The threshold is not a duty-free allowance for business shipments.
Reclaiming the VAT
If your business is VAT-registered, import VAT is generally recoverable — either through your monthly import VAT certificate (C79) or via Postponed VAT Accounting, which lets you account for import VAT on your VAT return instead of paying it upfront.
This is why a proper, standard UK VAT invoice matters: it keeps the VAT reclaimable and your bookkeeping clean. Duty, by contrast, is a real cost and is not reclaimable.
What you need in place
You will need an EORI number to import, the correct commodity code for each product, and accurate paperwork (commercial invoice, packing list). A customs agent or a door-to-door sourcing service can handle the declaration for you.
Because duty rates depend entirely on the commodity code, always confirm the code and current rate on the HMRC Trade Tariff — or ask us to check before you commit to an order.
Frequently asked questions
Is this tax advice?
No. This is general information and rates change. Duty depends on your product's commodity code; confirm figures on the HMRC Trade Tariff or with a customs professional before ordering.
Can I avoid duty by splitting a shipment into small parcels?
No. Deliberately undervaluing goods or splitting consignments to stay under a threshold is non-compliant, and HMRC has been tightening enforcement of exactly this.