What is the UK import VAT on parcels service?

March 15, 2019

This is the UK HM Revenue and Customs (HMRC) new online service for sellers outside the UK (this includes the EU, outside of the EU and the Channel Islands) to report and pay the UK import VAT on goods they sell and send as parcels to UK buyers if the UK leaves the EU without a deal.

Sellers are encouraged to register for the service now so they are ready to use it if the changes are introduced on 29 March 2019.

To register, sellers will need a Government Gateway user ID and password. If they do not have one already, it can be created when they register for the service. They will also need to provide their or their business’ contact details and business accounting periods.

Once registered, sellers will be given a UK import VAT on parcels reference. This parcels reference should be included in documentation accompanying any parcels they send to UK buyers from 29 March 2019.

The parcels reference should be included on the outside of the parcel if you send parcels via a universal postal service provider, for example Deutsche Post or La Poste. For other parcel operators the reference should be included in documentation accompanying any parcels they send to UK buyers, for example the airway bill, from 29 March 2019.

The parcels reference enables parcel operators to identify that the seller has registered for the service to pay UK import VAT due and can deliver the seller’s parcels without any delays. HMRC will receive data about parcels that are entering the UK. Parcels without the correct parcels reference may be delayed.