To sell to UK shoppers with nothing to pay on delivery, ship DDP and collect UK VAT and any import duty at checkout. Show prices in pounds sterling, ideally with VAT already included, because UK shoppers expect the price they see to be the price they pay. With FlavorCloud the landed cost at checkout is guaranteed, and for orders where the goods are worth £135 or less we handle UK VAT at the point of sale for you.
How UK duties and VAT work on ecommerce orders
- Goods worth £135 or less: no import duty is charged, but UK VAT is charged at the point of sale instead of at the border. For these orders FlavorCloud is treated as the online marketplace, so we charge and account for the VAT.
- Goods worth more than £135: import VAT and any import duty are charged when the parcel enters the UK. With DDP, we collect them at checkout and pay them at the border, so your customer is never billed on delivery.
- The £135 is the value of the goods only. Shipping and insurance are not counted toward it.
- The standard VAT rate is 20%. Some goods qualify for the reduced or zero rate.
- Excise goods are different. Products such as alcohol and tobacco do not get low value treatment.
For rates, customs valuation, surcharges and restricted goods, see our United Kingdom import and landed cost reference.
How to set up your store for UK shoppers
1. Ship UK orders DDP
Make DDP the default for the UK so duties and VAT are paid at checkout. A parcel that arrives with a bill attached is a common reason shoppers refuse delivery. See Shipping with DDP.
2. Show prices in pounds
Set the UK up as its own market in your store and show prices in GBP. Round to price points UK shoppers recognize, such as £24 or £49, instead of a straight conversion like £23.62.
3. Decide how VAT and duties appear
You have two good options:
- All in pricing. With Localized Market Pricing, the product price already includes shipping, duty, VAT and fees, which matches how UK shoppers are used to seeing prices.
- A clear breakdown. Show shipping, duty and VAT as separate lines. Shopify Plus merchants can add the Cost Breakout checkout extension.
4. Check your tax settings
If Shopify is set to collect taxes, FlavorCloud will not collect or remit them. Review your settings for the UK market so tax is not charged twice or missed. See Managing tax thresholds.
5. Get your product data right
Duty and VAT are based on the HS code, country of origin and declared value of each product. A wrong code can mean the wrong rate. See Managing your HS codes and Managing your country of origin.
6. Say it next to the price
A short line such as "Prices include VAT and duties. Nothing to pay on delivery." on product pages and in checkout answers the question before it is asked.
7. Make UK returns easy to understand
State whether you accept UK returns, who pays return shipping and how refunds work. Our returns FAQ for merchants has wording you can adapt.
What is changing in the UK
The UK government plans to remove the £135 customs duty relief for low value imports, with the change expected by October 2028. Once it takes effect, low value orders may also carry customs duty. We will update this article as the details are confirmed.
FAQs
Do I need to register for UK VAT?
For orders where the goods are worth £135 or less and ship through FlavorCloud, we handle the VAT registration and accounting. Orders above £135 and your wider UK sales may create obligations for your own business, so check Independent foreign sales and revenue tax registration and talk to your tax advisor.
Will my UK customers pay anything when the parcel arrives?
Not on DDP orders. Duties and VAT are paid at checkout, and the guaranteed landed cost means nothing more is collected at the door.
Why does a UK order show VAT on the shipping too?
UK import VAT is generally worked out on the goods plus shipping, insurance and any duty, not on the product price alone. Our UK reference walks through the calculation.
Questions about selling to the UK? Contact your FlavorCloud account manager.
