Navigating post-Brexit e-commerce in the UK
Brexit has fundamentally changed the rules for selling goods between the UK and the EU. Since 1 January 2021, the UK operates as an independent customs territory with its own VAT rules, product standards and border procedures. For e-commerce businesses, understanding these changes is essential for maintaining profitable cross-border trade with UK consumers.
Import VAT changes
One of the most significant post-Brexit changes affects how VAT is collected on goods entering the UK. For consignments valued at £135 or less, the overseas seller must register for UK VAT and charge it at the point of sale (rather than import VAT being collected at the border). For consignments above £135, import VAT at 20% is charged at the UK border and must be paid by the importer. Online marketplaces (including Amazon, eBay and OnBuy) are deemed the supplier for goods sold through their platforms by overseas sellers, making the marketplace responsible for collecting and remitting UK VAT.
Customs declarations
All goods entering the UK from the EU (and rest of world) now require customs declarations. This includes a Commodity Code for each product, declared value of goods, country of origin information, and an EORI (Economic Operators Registration and Identification) number. UK EORI numbers start with "GB" followed by your VAT number or a unique reference. Customs declarations can be submitted through the Customs Declaration Service (CDS) which replaced CHIEF in 2023.
Rules of origin
Under the UK-EU Trade and Cooperation Agreement, goods that qualify as originating in the UK or EU can be traded tariff-free. However, proving origin requires careful documentation. Products must meet specific rules of origin criteria, and exporters need to include a Statement of Origin on the commercial invoice for consignments over £6,000. Goods assembled in the UK using components from non-EU/UK countries may not qualify for preferential treatment.
Product standards and UKCA marking
Post-Brexit, the UK has introduced its own product conformity mark – UKCA (UK Conformity Assessed) – to replace the CE mark. While CE marks are still accepted for most product categories during a transition period (extended to 2027 for most products), sellers should prepare for the eventual mandatory adoption of UKCA marking for the GB market. Northern Ireland remains aligned with EU product rules under the Windsor Framework.
UK GDPR
The UK has retained its own version of GDPR, known as UK GDPR, administered by the Information Commissioner's Office (ICO). EU businesses must now comply separately with UK GDPR when processing UK customer data. This may require appointing a UK representative if you are based in the EU and processing UK personal data. The UK has been recognised by the EU as having adequate data protection standards, allowing data to flow freely from the EU to the UK.
Practical steps for post-Brexit compliance
- Register for a UK EORI number
- Register for UK VAT if required
- Ensure customs declarations are filed for all goods
- Review product labelling and conformity requirements
- Update privacy policies for UK GDPR compliance
- Consider UK-based fulfilment to avoid border delays
Zunapro helps e-commerce businesses navigate the complexities of post-Brexit selling, from customs compliance to VAT registration and UK-based fulfilment solutions.
