VAT and Customs Fees Explained

When buying an item from a country outside the UK, like the Netherlands (in the EU), the process involves a few extra steps compared to buying locally. Let’s go through what this means and what costs you might expect to pay when your purchase arrives in the UK.

Below you will find some samples. 

VAT (Value Added Tax): Since you’re buying from a store in the Netherlands and the item is being shipped to the UK, VAT is removed from the item’s price by the seller. VAT is a tax usually included for customers within the seller’s country (in this case, the EU), but since your order is crossing into the UK, it can be deducted. You’ll see this adjusted in the online store’s checkout if the store has removed it for you.

Customs Duty and VAT in the UK: Even though the VAT was removed on the Dutch end, the UK will add its own VAT and possibly customs duty when the package arrives in the UK. Here’s how it works:
- Import VAT: UK VAT (usually 20%) applies to most imported goods, so it will likely be added to your item’s cost when it arrives.
- Customs Duty: For some items, especially those over a certain value (generally above £135), customs duty might also apply. The duty rate can vary depending on the type of item you’ve ordered.

Handling Fees: Once your item arrives in the UK, the delivery company handling your package will usually apply a handling or processing charge. This covers their cost for handling customs paperwork and getting the item cleared through customs. Different couriers have different handling fees, which is something to be aware of.

Shipping Costs: Since the package is coming from outside the UK, international shipping can be pricier than domestic. While you mentioned the shipping cost seems high, it’s likely the best price for this distance and type of delivery.

Each item example shows that additional costs (UK VAT, handling charges, and potential customs duty) will increase the final price. This is common when buying from EU sellers after Brexit and is something to consider when comparing prices.

Examples

  • Pulse Thong

    Example: Item Cost = €45 (Including VAT)

    Item Price (after VAT removal): €37.19 (approximately £32)

    UK Import VAT (20%): £6.40
    This 20% UK VAT is applied when the item enters the UK.

    Handling Charge: £8

    (average charge)

    Estimate cost on arrival: £14.40

  • Nightshade Bra

    Example: Item Cost = €130 (Including VAT)

    Item Price (after VAT removal): €107.44 (approximately £93)

    UK Import VAT (20%): £18.60
    This 20% UK VAT is applied when the item enters the UK.

    Handling Charge: £8

    (average charge)

    Estimate cost on arrival: £26.60

  • Honeycomb Tank Top

    Example: Item Cost = €240 (Including VAT)

    Item Price (after VAT removal): €198.35 (approximately £171)

    UK Import VAT (20%): £34.20
    This 20% UK VAT is applied when the item enters the UK.

    Customs Duty: £20.52

    (12% for clothing):

    Handling Charge: £8

    (average charge)

    Estimate cost on arrival: £62.72

Disclaimer on Import Charges and Returns
When buying from an EU-based seller, please be aware that import charges (such as UK VAT, customs duty, and handling fees) are not the responsibility of the seller. These charges are applied by the UK government and the shipping carrier once your item reaches the UK. You, as the buyer, are responsible for paying these charges.

If you choose not to pay these import fees when the item arrives, the delivery company will typically return the item to the seller. Please note that, in this case, any refund will be issued minus any additional costs incurred during the return process. This will include return shipping fees.

Refund Process for Refused Deliveries
If you decline to pay the import charges and the item is sent back to the seller:

Refund Eligibility: I will provide a partial refund once the item is returned. However, the refund amount will be reduced to cover any expenses incured during the return process.
Deductible Charges: These charges may include the initial shipping cost, return shipping fees, and any other handling or restocking fees.
Timelines: The refund process may take longer in these cases, as the item must first be shipped back and received.