UK low-value imports: VAT now, the £135 duty change by October 2028
Goods of £135 or less sold to UK customers still use seller-collected VAT, and the £135 customs-duty relief still applies. The UK government has confirmed that relief will be removed, with new arrangements by October 2028 at the latest.
What is the short answer?
Today, goods sold directly to UK customers in consignments of £135 or less have VAT charged at the point of sale by the seller or the online marketplace, and they still benefit from customs-duty relief. On 13 July 2026 the UK government said that duty relief will be removed and the new customs arrangements will start by October 2028 at the latest. An earlier note had said March 2029. This note was reviewed on 11 October 2026. Rules change; the formal quote and the official sources below take precedence over this summary.
How does VAT work on goods of £135 or less?
For consignments of £135 or less sold directly to UK consumers, VAT is charged at the point of sale rather than at the border. If you sell through an online marketplace, the marketplace is usually responsible for the VAT. If you sell directly from your own store, you usually charge the VAT yourself, which normally means registering for UK VAT. Overseas sellers should check their registration position with a UK tax adviser.
What about consignments over £135?
Above £135, import VAT and any customs duty are handled at the border in the usual way, and the importer of record pays them. Business-to-business sales follow different rules.
What is changing by October 2028?
The £135 customs-duty relief for low-value imports is being removed. The detailed duty treatment is still being set. The government's direction is clear, so brands that rely on low-value direct shipments to the UK have a window of about two years to plan.
What should a brand do now?
Keep shipping China direct while the relief applies, especially for new and long-tail SKUs. Identify the SKUs that sell steadily in the UK; they are the candidates for UK warehouse stock before the change. Make sure product classification and origin data are accurate now, so that duty can be calculated correctly when it applies. Watch for the detailed rules and update your prices when they are published.
What does this mean on a ShopRest route?
The UK route page shows China direct and UK warehouse fulfilment as two separate GBP totals. Applicable VAT and duty are quoted separately from logistics. The UK warehouse price includes storage, putaway, dispatch, packaging and carriage; fuel, a volume over 0.04 m³, signature, peak season and failed delivery are extra. Express does not serve BF postcodes.
Worked example: one garment to London
One apparel item, 0.2 kg. China direct apparel economy has a reference price of GBP 3.23 with fuel included and a reference transit of 4–6 working days. From UK stock, UK standard is GBP 3.78 and UK express is GBP 4.74, with 1–3 and 1–2 working days. At 1 kg, China direct apparel economy is GBP 7.80 while UK standard is GBP 3.82, so heavier parcels favour local stock sooner. These are reference prices at 1 GBP = 8.85 RMB, not a formal quote.
When will UK warehouse stock make more sense?
Already today for heavier parcels and steady sellers, as the 1 kg example shows. After the duty change, low-value China-direct parcels will carry duty that bulk imports into a UK warehouse handle once at the border. Review your UK SKU list against both costs before 2028 rather than switching the whole catalogue at once.
Sources
UK government guidance on VAT for goods sold directly to UK customers, and the reform of customs rules for low-value imports, linked below.