VAT on Imports and Exports After Brexit

EORI numbers

You need a UK Economic Operator Registration and Identification (EORI) number starting GB to import or export goods. If you trade with Northern Ireland under the Windsor Framework, you may need an XI EORI, depending on the movement and customs activity.

Apply free at gov.uk; usually issued within 5 working days.

Importing goods

Postponed VAT Accounting (PVA)

Eligible VAT-registered importers can use PVA where the customs declaration and relevant conditions permit it. Instead of paying import VAT at the border and reclaiming it later, you:

1. Declare the import VAT on box 1 of your VAT return (output VAT)
2. Reclaim the recoverable amount in box 4, subject to normal input-tax rules
3. The import VAT and recovery offset only to the extent recovery is allowed

You'll get a Monthly Postponed Import VAT Statement (MPIVS) from HMRC's Customs Declaration Service to support box 4.

Customs duty

Separate from VAT. Calculated on the commodity code, customs value and origin of the goods. Trade agreements (e.g. UK–EU TCA) can reduce duty to 0% if origin rules are met.

Exporting goods

• Qualifying exports from Great Britain to outside the UK, and from Northern Ireland to outside the UK/EU, can be zero-rated if export and evidence conditions are met
• Keep evidence of export (commercial documents, transport docs, customs declarations) for 6 years
• For goods to the EU, the customer handles import VAT in their country
• B2C distance sales to the EU may need an Import One-Stop Shop (IOSS) registration if value ≤ €150

Northern Ireland

NI remains aligned with the EU VAT regime for goods. Goods moving GB ↔ NI follow special rules under the Windsor Framework. NI businesses can use the One-Stop Shop (OSS) for B2C sales to EU consumers.

Services — place of supply

VAT on services usually depends on where the customer belongs and whether they're in business:

Special rules apply to land-related services, hire of transport, restaurant services and admission to events.

Reverse charge on imported services

If you buy services from an overseas supplier for business use, you usually self-account using the reverse charge — declare output VAT in box 1 and reclaim it in box 4 (subject to your normal recovery rate).

Common pitfalls

• Forgetting to apply for an EORI before the first shipment
• Not downloading the MPIVS each month
• Wrong commodity codes leading to incorrect duty
• Missing export evidence within the applicable deadline (normally 3 months) — HMRC can withdraw zero-rating retrospectively

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General guidance, not tax advice. Speak to a qualified accountant for advice tailored to your situation. Figures relate to the 2025/26 UK tax year. Source: HMRC, gov.uk.

See HMRC export conditions and PVA eligibility.