Royal Mail has issued a notice about changes to customs charges applied to low value items entering the United Kingdom. These changes reflect updated import regulations, under which VAT is now due on all commercial goods imported into the UK, regardless of value. As a result, items previously exempt from charges may now be subject to VAT, as of 1 July 2026.
In addition to VAT, Royal Mail will continue to apply a handling fee when customs charges are payable. This fee covers the administrative cost of processing the item through customs and advancing charges to HMRC.
We are encouraging clients to check current guidance to ensure they incorporate the necessary charges into their pricing when selling cross-border.
If you would like to talk to a member of the Tax Desk team about how this impacts your business, please get in touch using our Contact Us form.