Selling Goods to UK & EU After Brexit: VAT & EORI

Since the end of the Brexit transition period in 2021, trading goods between the UK and EU has dramatically changed. In 2025, businesses are still adapting to evolving VAT regulations, customs procedures, and EORI requirements. This article brings together the most up-to-date information to help UK and EU businesses selling across borders stay compliant and avoid costly penalties.

Selling Goods to UK Consumers from the EU

If you are selling goods from the EU into the UK, especially online or through marketplaces, you need to be aware of the following:

VAT on Low-Value Goods: Goods valued at £135 or less are subject to UK VAT at the point of sale. The seller (or the online marketplace if applicable) must collect and remit UK VAT.
Marketplaces vs Direct Sales:
- When selling through a marketplace (e.g., Amazon UK, eBay), the platform is responsible for collecting VAT.
- If you sell directly to UK consumers and ship from the EU, you must register for UK VAT and comply with Making Tax Digital (MTD) rules for digital VAT filing.
No More Low-Value Consignment Relief (LVCR): As of January 2021, the UK abolished LVCR, meaning VAT is due on all imports regardless of value.
Goods Over £135: Customs declarations and UK import VAT are required. Typically, the buyer becomes the importer unless you arrange Delivered Duty Paid (DDP) shipping and handle VAT and duties yourself.

Selling Goods from the UK to EU Consumers

UK sellers shipping goods to consumers in EU countries must follow the EU’s import VAT regime:

Exports from the UK: These are zero-rated for UK VAT purposes. You must retain evidence of export.
EU Import VAT:
- Goods are subject to import VAT in the destination country.
- For consignments under €150, you can register for the Import One-Stop Shop (IOSS) scheme to simplify VAT collection and avoid surprise charges for the customer.
- For goods over €150 or if you do not use IOSS, the buyer may need to pay VAT and customs charges on delivery.
OSS & IOSS Schemes:
- These EU systems simplify VAT reporting for distance sales across multiple EU countries.
- In 2025, OSS/IOSS participation is mandatory for businesses wishing to centralize their EU VAT compliance.
Local VAT Registration: If you store goods in the EU or exceed sales thresholds in specific countries, you may still need to register for local VAT.

Understanding EORI Numbers

An EORI (Economic Operators Registration and Identification) number is required for businesses trading goods across UK and EU borders.

UK EORI (starting with GB):
- Required for UK businesses importing/exporting goods outside the UK, including the EU.
- Apply through HMRC. Now issued automatically with VAT registration in many cases.
EU EORI (country-specific prefix):
- Required if you are a UK business trading with or storing goods in the EU.
- You only need one EORI registered in the first EU country where you operate.
Use in Customs Declarations:
- Your EORI must be quoted on all customs declarations, safety filings, and import/export paperwork.

Customs Declarations in 2025

Both the UK and EU now use digital customs systems. As a business, you must:

UK Side:
- Use the Customs Declaration Service (CDS) for all UK import/export declarations.
- Classify your goods using UK Trade Tariff (HS2 codes).
EU Side:
- Use TARIC and relevant national portals.
- Provide origin, value, commodity codes, and proof of customs compliance.
Third-Party Agents:
- Many businesses use customs brokers to manage the complexity of filing correctly.
Rules of Origin:
- Under the UK-EU Trade and Cooperation Agreement (TCA), goods may be tariff-free, but only if origin rules are met and declared correctly.

Practical Tips for 2025 Cross-Border Sellers

Register for UK VAT if you are an EU seller sending goods into the UK directly.
Use IOSS to manage EU import VAT on shipments under €150.
Get both UK and EU EORI numbers if trading across both regions.
Hire a customs broker or use a marketplace to reduce compliance burdens.
Implement MTD-compliant accounting software for digital VAT returns in the UK.
Keep clear records of all exports and imports, including invoices, origin statements, and EORI usage.
Regularly check tariff and customs updates from both UK HMRC and EU national authorities.