UK Royal Mail has fees on imported packages that come from outside of the European Union. The two main fees involved in these are VAT (value-added tax) and the Royal Mail handling fee.
Starting January 1st, 2021, all goods shipped to the UK are subject to VAT regardless of the price of the goods in the shipment. Previously, only goods over the £15 threshold were subjected to a 20% VAT. You can use the Avalara VAT Risk Assessment tool to find out if your company will need to be VAT registered.
The recipient handles paying the VAT and the handling fees once the package arrives in the UK. The seller does not charge these two fees at the time of the sale.
- The VAT tax standard rate is 20%
- The handling fee for all Royal Mail imports is £8
- Additional fees if customs examines a package
Inform UK purchasers that packages coming from the USA will incur VAT and handling fees when it arrives. Royal Mail will leave a notification to pay this fee so the customer can receive the package. Royal Mail provides a link on its customs and import page to make a customs payment online.
For more information, read Royal Mail’s page on importing goods and customs.