What’s Changing for Imports & Online Trade
As of 23 June 2026, the UK government announced reforms to level the playing field between high street and online sellers. Key measures include:
- Removing customs duty relief for low value imports (LVI) – goods under £135 will now be subject to customs duties and VAT just like higher-value imports. (gov.uk)
- New controls and enforcement around online sellers to ensure proper VAT collection.
- Specific reforms to VAT on sale of land, especially to support delivery of social housing.
These changes are underway; some are effective now, others in consultation or to be legislated. (gov.uk)
Implications for Businesses
| Business Type | Main Impact | Steps to Prepare |
|---|---|---|
| Small reseller importing goods (online stores) | Costly duty + VAT where previously none; higher pricing pressure | Update pricing to include new duty; assess supply chains; ensure customs declarations are proper |
| High street retailer competing with foreign imports | Increased competition as all imports taxed; supply chain adjustments | Emphasise “local” or “UK-made”, adjust margins; make sure cross-border costing includes new duties |
| Developers or landlords building social housing | VAT relief on land may change; projects’ costs and timelines affected | Review upcoming VAT reliefs; ensure eligibility; consult specialist in property VAT |
Actionable Advice
- Audit your import practices: classify goods properly, prepare for valuation and classification by customs
- Ensure you are fully registered for VAT, including digital sales, marketplaces
- Factor duty and compliance costs into pricing early
Case Study
Tina’s Trading imports £100 goods from outside UK and sold online. Under old system, no duties if under £135. Under the new rules, she’ll now pay duty plus VAT. To avoid margin loss, she adjusts product prices or absorbs part of the cost, communicates price changes to customers, and ensures her customs declarations are accurate.
What to Watch
- GOV.UK consultation outcomes regarding VAT on land reliefs
- Exact schedule for enforcement of online seller obligations
- How HMRC will audit customs declarations and low-value imports for compliance
Conclusion
If you sell online or import goods, these reforms change your cost base significantly. Start assessing your risks, adjust pricing, ensure your systems and compliance are ready. Acting proactively can avoid cash flow shocks and unexpected bills.