Brexit E-Commerce UK 2026 – Selling on Etsy, eBay and Amazon to UK Customers

Hundreds of thousands of Polish sellers on Etsy, eBay and Amazon ship parcels to the United Kingdom every year. Before Brexit this was intra-EU trade – simple, no duties, no special declarations. After 1 January 2021 the situation changed: the UK is now a third country, and every commercial shipment requires a customs declaration and must go through customs clearance in the UK.

The £135 Threshold – the Key Dividing Line for E-Commerce

How Does the £135 Threshold Work in the UK?

The UK introduced a system where VAT responsibility differs depending on the value of the shipment:

Shipments valued up to £135 (inclusive):

• UK VAT (20%) is collected at the point of sale – by the marketplace (Etsy, eBay, Amazon).
• The marketplace is treated as a "deemed supplier" – it collects VAT from the buyer and remits it to HMRC.
• The seller does not need to register for UK VAT or account for VAT independently, if selling exclusively through platforms covered by this system.
• Import duty is 0% for goods valued up to £135 (de minimis relief).

Shipments valued above £135:

• VAT and import duty are collected at customs clearance in the UK.
• The recipient (buyer) usually pays duty + import VAT on delivery of the parcel.
• Alternative: the seller can offer DDP (Delivered Duty Paid) delivery – paying duty and VAT upfront and including them in the price.

Etsy, eBay, Amazon – How Each Platform Handles UK VAT

Etsy

Since 1 July 2021 Etsy has been registered as a "deemed supplier" for sales to the UK. For orders up to £135 Etsy automatically calculates and collects UK VAT (20%) from the buyer and remits it to HMRC. The seller receives the net amount (excluding VAT). You do not need to do anything special – but you must correctly complete the customs declaration on the parcel.

eBay

eBay operates similarly to Etsy for sales to the UK below £135 – it collects and accounts for UK VAT. Important: eBay requires an HS code (or at least a detailed description of the goods) in the product information to facilitate customs clearance on the UK side. Without this the parcel may be held up.

Amazon

Amazon applies similar rules for sales through FBA (Fulfilment by Amazon) in the UK and for Marketplace Sellers. If products are stored in the UK (FBA), UK VAT rules apply directly. For shipments from Poland via Amazon Marketplace: Amazon collects UK VAT for orders up to £135.

IOSS – What It Is and Why It Does Not Apply to the UK

IOSS (Import One-Stop Shop) is an EU system that simplifies EU VAT accounting on shipments from third countries to the EU for parcels up to €150 in value. This system applies to European Union countries.

The United Kingdom is NOT part of IOSS. The UK has its own separate system (described above – the £135 threshold, deemed supplier). Registering for IOSS is useless for shipments to the UK – it does not exempt from UK VAT or simplify customs clearance in the UK.

CN22 and CN23 Customs Declaration – How to Complete Them Correctly

CN22 – Parcels up to 300g and Value up to 300 SDR

CN22 is a simplified customs declaration used for small postal parcels. In 2026 most small parcels from Poland to the UK require either CN22 or CN23 (depending on weight and value):

• CN22 form affixed to the envelope/parcel.
• Required fields: description of contents (detailed!), weight, value, country of origin, category (gift/commercial sample/documents/other – for sales always: sale or other).

CN23 – Parcels Over 300g or Value Over 300 SDR

CN23 is the full postal customs declaration. Required fields:

• Sender: name/surname or company, address, country.
• Recipient: name/surname, address, country.
• Description of contents: detailed description of each item (e.g. "hand-knitted wool scarf" not "clothing").
• Quantity and weight: for each item separately.
• Value: actual commercial value (sale price), not understated!
• HS/CN code: customs tariff code – at least 6 digits. Check the code on the UK Trade Tariff tool.
• Country of origin of the goods.
• IOSS/VAT number (if applicable for EU – not for UK).

Most Common Mistakes by Polish E-Commerce Sellers When Shipping to the UK

Mistake 1: Marking the Parcel as "Gift"

Writing "gift" on a customs declaration for a commercial shipment is an error that can result in the parcel being seized by UK Border Force and penalties being imposed. The "gift" category is reserved for gifts between private individuals, with no commercial element. When selling on Etsy/eBay always enter the correct commercial category.

Mistake 2: Understating the Value

Declaring a value lower than the actual sale price is a false declaration – contrary to UK and EU law. HMRC can impose penalties and the parcel will be held or returned. Always declare the actual transaction value.

Mistake 3: Insufficient Description of Goods

"Clothing", "toy", "item" – such descriptions are unacceptable. Write: "handmade ceramic coffee mug, stoneware, 300ml" or "linen table runner, hand-embroidered, 45×150cm". The more precise the description, the faster UK customs clearance.

Mistake 4: Missing HS Code

Since 2021 the UK requires an HS code (commodity code) on customs declarations. A missing code can cause delay or seizure of the parcel. Find the code for your goods on the UK Trade Tariff tool (trade-tariff.service.gov.uk).

Shipments Above £135 – What You Need to Know

For more expensive products (art jewellery, artworks, premium handmade goods) the value may exceed £135. In that case:

• The marketplace (Etsy, eBay) does not collect UK VAT upfront.
• UK Border Force or the courier company will collect duty + 20% VAT from the recipient before delivering the parcel.
• Possible alternative: DDP (Delivered Duty Paid) – the seller pays duty and VAT upfront. Requires registering as an importer in the UK or engaging a customs broker.

For regular B2B shipments above £135 it is worth considering full customs clearance through a customs broker – see our export services.

Official Sources

• GOV.UK: VAT and overseas goods sold using online marketplaces
• GOV.UK: Customs declarations for goods sent from abroad
• UK Trade Tariff (HS code finder)

Frequently Asked Questions (FAQ)

Do I need to register for UK VAT to sell on Etsy or eBay to the UK?

In most cases no – if you sell exclusively through platforms such as Etsy, eBay or Amazon, and your shipments are valued up to £135 per order, the platforms act as "deemed supplier" and themselves collect and remit UK VAT at 20% to HMRC. You do not need to register for UK VAT or account for VAT independently. The situation is different if you sell directly (your own online shop without a platform intermediary) or shipments exceed £135 – in those cases additional VAT obligations may arise.

How do I correctly complete a CN23 for an Etsy shipment to the UK?

On the CN23 form write: a detailed description of the goods (e.g. "handmade ceramic mug, porcelain, 350ml" – not "ceramics" or "item"), the actual commercial value (the sale price from Etsy, without rounding down), the weight of each item, the HS code (commodity code – find it at trade-tariff.service.gov.uk), the country of origin (e.g. "Poland" or "PL"), category: tick "Sale of goods". Never write "gift" for commercial orders.

What is IOSS and does it help with sales to the UK?

IOSS (Import One-Stop Shop) is an EU system simplifying EU VAT accounting on shipments from third countries to EU Member States for parcels below €150. The United Kingdom is not part of the IOSS system – the UK left the EU. Registering for IOSS has no effect on UK VAT or customs procedures in the UK. The UK has its own separate e-commerce system based on the £135 threshold and deemed supplier marketplaces.