The legal checklists for selling from Europe into the UK in 2023
The “before you start” checklist:
- Check your licenses and export conditions: Even if your products are approved in your own country, you may need new certification to be able to sell them in the UK. Also, some products (medical equipment, etc) are restricted when shipping from the EU to the UK. It’s best to check with your country’s customs authority – here is a list of all the national customs websites in the EU.
- (Optional) Register your Intellectual Property in the UK. The IP you already own in the EU is not protected in the UK anymore, post-Brexit.
- Figure out how you’ll fulfill orders: UK consumers expect fast delivery, low cost shipping, and a wide range of delivery options, including “click and collect”, ideally even choosing a delivery time. British customers prefer Royal Mail, but you can use other local distributors as well (some have better rates).
Eventually, you’ll need to decide if you want to have a warehouse in the UK or ship directly from Europe.
Finding a local warehouse partner might be expensive but worth it – faster delivery, easier returns, cheaper shipping, plus all duties are already handled for your customers.
A great option is using the Amazon FBA (Fulfilled by Amazon) programme in the UK, which means exactly what it says: Amazon will handle it for you, if you of course have an Amazon store. You’ll just ship to the Amazon UK warehouse, and they’ll take it from there.
The downside? Fees everywhere: storage fees, long-term storage fees, removal fees, fulfillment fees, returns processing fees, and the list goes on.
The second option is shipping from the EU. You can even use this on Amazon – they have a special program for shipping between the UK and several EU countries, called the European Fulfillment Network (EFN). It basically lets you sell to the UK easily without needing to register for VAT in the UK.
Amazon will even give your products its Prime badge!
Of course, the same downsides (fees, mostly) apply.
Checklist for shipping to the UK from the EU post-Brexit
1. Get an EORI number. You need it to ship goods between the UK and other countries. You can get the EORI number for free on the UK government website. You’ll then use this number on commercial invoices so that customs processing goes smoothly.
2. Always pack a commercial invoice. You’ll need it so your goods can clear UK customs. It contains information about your store, shipping arrangements, and what’s inside the parcel. It’s best to stick two on the outside of the package, and pack one inside for your customer.
Here’s how a commercial invoice looks like (credit: Sendcloud):
3. Use the right customs declaration. If you use postal services (like Royal Mail) instead of DHL or another delivery service, you’ll also need the C22 or C23 form. If you use DHL, UPS, etc, you won’t need to deal with either of these.
A CN22 or CN23 form is mandatory, and mainly used for shipments that are transported by a postal company outside the EU.
Well, which one do you need, exactly?
- Shipping goods up to 2kg and with a value of up to €425? Use the CN22 form
- Otherwise, CN23. Also, a CN23 form is always accompanied by a CP71 dispatch note.
Here’s how a C22 form looks like (credit: Sendcloud):
And here’s how a C23 form looks like (again credit due to Sendcloud):
4. Make sure to use the correct HS code for each product. This is a code that customs worldwide (not just EU or UK) use to classify products, so that the right duties and taxes are applied. HS codes can have multiple digits, but we recommend using at least 6 digits if possible (as to be more specific, basically). You can use this tool on the UK government website to look up HS codes.
Checklist for handling VAT when selling to UK customers from the EU
1. Are you using a program like Amazon’s European Fulfillment Network? Then you don’t need to worry about VAT, Amazon handles it.
2. Is your order under £135? Then you need to account for VAT to HMRC. This means you will be required to register and account for the VAT to HMRC in the UK.
You’ll also need to use the term “Delivery Duty Paid” for small orders. This basically means you take care of everything related to shipping, including duties, taxes and customs.
3. Is your order over £135? Then you need to decide who is responsible for VAT. Technically you and your customers decide together who is responsible for this. For example, you could use the term “DAP”, or “Delivered at Place”, if you want the customer to handle VAT. Money-wise, for the customer, it’s pretty much the same: they have to pay VAT one way or another.
Checklist for dealing with UK duty refunds
You’ll definitely have returns at some point – most, if not all, ecommerce stores have to deal with them. Here is what you need to do:
1. Did your customer pay for duties (you used DAP)? Then they need to get a duty refund themselves – you can help them by sending them over to us. 🙂 We’d love to help them get their duty refund – just reach out to partnerships@dutyrefunds.co.uk to set up a call.
2. Did you pay the duties for them (you used DDP)? If Royal Mail or Parcelforce delivered the goods, you should fill in a BOR 286. Otherwise you should go for a C285 form.
About Duty Refunds:
At Duty Refunds, we believe selling internationally should be just as easy as selling locally. Duties can be reclaimed through our easy-to-use app instead of being lost to the government. As the first and only online import duty and VAT refund platform for UK shoppers, we’ve already helped customers refund half a million pounds worth of purchases.
We’re rated a 4.8 (excellent) on Trustpilot, and we’re integrated with courier companies (eg: DHL, DPD, Fedex and Parcel force) and HMRC, making the whole process seamless.
Partnering with us lets you focus on sales while we take care of customers’ inquiries and complaints regarding import charges. If you need any help on duty & tax refund for your international orders, please email us at partnerships@dutyrefunds.co.uk to set up a call or visit our retailer page.
What you get by partnering with us:
- Boost your average order value in the UK market by increasing trust with UK consumers – they’ll know they can get a full refund, no matter what
- Increase your customer lifetime value through a higher-than-expected level of customer service and a smooth, no-headache, easy returns process
- Reduce the time your team needs to spend on customer service
- Gain an entirely new revenue stream through our shared commission scheme
