UK Import VAT, EORI and Compliance in 2026: What UK Buyers Need to Know

Most UK businesses buying electronics directly from overseas suppliers meet customs and VAT rules for the first time at the moment a shipment is held. That is the expensive way to meet them. This guide covers what applies, what does not, and which documents to keep — with the understanding that rules change, and that nothing here is a substitute for advice on your specific situation.

When an EORI number is required

An EORI number identifies your business to EU and UK customs authorities. You need one if you import goods into the UK from outside the UK, export goods from the UK, or submit customs declarations in either direction.

The number is issued free by HMRC. For a UK company it normally arrives within three working days of the application, and the same number works for both importing and exporting — you do not need two.

What you are doing	EORI required?
Importing goods from outside the UK	Yes
Exporting goods from the UK	Yes
Moving goods between Northern Ireland and Great Britain	Generally no, but check your specific route
Buying from a UK supplier who already holds the goods in the UK	No
Buying from a UK supplier who imports on your behalf	No — but confirm who the importer of record is

Import VAT and the reverse charge

Import VAT is charged on goods entering the UK at the rate that would apply if the goods were sold in Great Britain — 20% on electronics. The key point for buyers is who pays it and when.

There are two arrangements, and they are not interchangeable:

• Supplier collects the VAT. Common with UK-based distributors holding stock in the UK. There is no separate import VAT step for you, because the goods never cross the border as your consignment.
• You pay import VAT on arrival. Typical when goods ship direct from an overseas supplier. Import VAT is normally paid at the point the goods enter the UK, before or at the same time as any duty.

The reverse charge is the mechanism used when the supplier is outside the UK. The overseas supplier charges you VAT at their local rate or zero, and you account for UK import VAT yourself through your VAT return. This is not an exemption — it moves the accounting, not the liability.

Deferred VAT schemes in the UK

Paying import VAT at the moment goods arrive means carrying the cash cost up front, which matters on high-value shipments. Deferred VAT accounting schemes let eligible businesses delay that payment until the VAT return, or until the goods are sold if you use the retail scheme.

Both schemes require HMRC approval before use, and both have conditions. The important practical points:

• You cannot choose to defer on a consignment already in transit — approval must be in place beforehand.
• Deferred amounts must still be reported on your VAT return, on a separate basis from output VAT.
• If you are not VAT-registered, or are below the registration threshold, you cannot use either scheme and you simply pay on arrival.

Duty on electronics: HS codes

Customs duty is calculated on the commodity code, called the Harmonised System code or HS code, assigned to the goods. Duty rates for electronics vary more than most buyers expect — the same laptop can fall under several codes depending on its specification.

Typical category	Duty treatment
Laptops, desktops, servers	Generally 0% in the UK for non-origin goods from most countries
Smartphones	0% under the common tariff, subject to origin rules
Displays and monitors	0% to 6% depending on code and origin
Batteries and power supplies	Frequently above 0% — check the specific code
White goods	Usually 0%, but components vary

Two things worth checking with your supplier: the correct HS code for the goods, and whether any preferential origin claim is being made. A claim your supplier cannot support is your liability, not theirs.

Documents to keep

Customs and VAT records must be retained for a minimum of four years, and three years is the norm for VAT records. In practice, keep anything longer if a dispute is possible.

• Commercial invoice, showing supplier, description, quantity, value and terms
• Packing list, where it differs from the commercial invoice
• Air waybill or bill of lading
• Proof of origin, if a preferential rate has been claimed
• Evidence of any deferred VAT scheme approval, and the deferred amount
• Your own VAT return and workings for the period covering the import

Keep them organised by consignment reference. Reconstructing which invoice belonged to which shipment is genuinely difficult two years later, and it is the first thing asked for in a dispute.

Working with an overseas supplier

Ask two questions before the first order. Who is the importer of record? If the supplier imports in their own name and sells to you domestically, there is no import VAT step for you — but you should be clear about who bears liability if the goods are wrong. If the supplier ships to you directly, you are the importer, and you need an EORI number and the ability to handle a customs declaration.

Ask also whether the price is quoted EXW, FOB, CIF or DDP. These terms decide who pays freight, who pays duty, and whose insurance covers the goods in transit. Getting this wrong can add import VAT to a price that was already meant to include it.

Compliance checklist

• EORI number applied for, received, and used on every declaration
• HS codes agreed in writing with the supplier before the first order
• Incoterm confirmed and written into the purchase order
• Deferred VAT scheme approved in advance, if you intend to use one
• Preference and origin evidence collected for every consignment
• Customs and VAT records filed and retained for four years
• Imported goods checked against the declaration on arrival

If a shipment is held, the fastest route is usually your freight forwarder or courier rather than HMRC directly. If you want a second opinion before you commit to a large order, ask us — we would rather answer the question before the container leaves than after.

Frequently asked questions