Post-Brexit UK: customs, VAT, and why shipping became the problem
Rafael Mendes · 2026-10-07
Ioss and VAT
After Brexit, import rules changed significantly. The IOSS (Import One-Stop Shop) system was implemented in the European Union, but the UK is no longer part of it. This means that when importing products into the UK, businesses need to handle VAT (Value Added Tax) differently. VAT in the UK ranges from 0% to 20%, depending on the type of product. For products under £135, the seller must collect VAT at the time of sale, but for products above that amount, the buyer is responsible for paying VAT at customs.
Royal mail vs evri
Two of the main delivery options in the UK are Royal Mail and Evri (formerly known as Hermes).
- Royal Mail: More traditional, with good coverage and reliability, but prices may be higher and delivery times longer.
- Evri: Generally offers more competitive prices and fast delivery times, but its reputation varies, and there may be reports of delays or delivery issues.
The choice between them can affect the customer experience and return rate.
Average order value in pounds
When calculating prices and shipping costs, it’s essential to consider the average order value in pounds. Products with an average order value below £20 may not be worth importing, especially when you factor in VAT and shipping costs. On the other hand, products with an average order value above £50 are more viable, since shipping costs and taxes make up a smaller percentage of the total value.
Delivery time and expectations
Delivery times in the UK can vary depending on the carrier and where the goods are coming from. In general:
- Royal Mail: 3 to 5 business days for domestic delivery.
- Evri: 2 to 4 business days, but this can vary.
It’s important to set realistic expectations for customers, since delays can affect satisfaction and repeat purchase rates.
IS IMPORTING FROM ABROAD WORTH IT?
The decision to import products into the UK after Brexit should be considered carefully.
If the product is in high demand and has an average order value above £50, then importing may be worth considering, even with VAT and shipping costs.
If the product has an average order value below £20 and high shipping costs, then it may not be worth it, since the profit margin could become unsustainable.
It’s crucial to do a detailed analysis of costs and demand before deciding.
What’s your average order value in pounds for products you’re considering importing into the UK?