Beginner guide to exporting products from the UK post-Brexit

Exporting products from the UK after Brexit requires understanding new customs procedures, paperwork and tax obligations that differ from trading within the EU single market. This guide outlines the core requirements so you can prepare your e-commerce business without unnecessary delays or costs.

Whether you sell handmade goods, dropship or manufacture in the UK, following structured steps helps you comply with rules on declarations, duties and VAT while exploring options like overseas fulfilment to reach customers faster.

Understanding post-Brexit export basics

Since the UK left the EU, exports to European countries are treated as movements to a separate customs territory. This means most shipments require a customs declaration even for low-value orders. Similar rules apply to other international destinations, although the exact processes vary by country.

Begin by deciding your Incoterms, such as EXW or DDP, to clarify who handles shipping costs and import clearance. Register for an Economic Operators Registration and Identification (EORI) number if you have not already done so; this is needed for most export declarations. Rules, thresholds and requirements change, so always verify the latest information on GOV.UK before shipping.

Preparing customs paperwork

Commercial invoices, packing lists and, where required, export declarations form the foundation of compliant shipments. A commercial invoice must include a clear description of the goods, their value, origin and HS commodity code. Incorrect codes can lead to delays or penalties.

Use the UK Global Tariff tool on GOV.UK to classify products accurately. For shipments to the EU you may need to provide proof of origin if claiming preferential treatment under the UK-EU Trade and Cooperation Agreement. Keep digital and paper copies of all documents for at least the period required by HMRC. Many carriers offer simplified paperwork options for low-value consignments, but you remain responsible for the accuracy of information provided.

Practical tip: create a template invoice that includes all mandatory fields so you can generate consistent documents quickly for each order.

Handling duties and import VAT for overseas buyers

When exporting, UK sellers usually do not charge UK VAT on goods leaving the country, provided the correct export evidence is held. The overseas customer may face import duties and local VAT upon arrival, depending on the destination country’s rules and the value of the consignment.

Decide whether to sell on a DDP (Delivered Duty Paid) basis, where you or your fulfilment partner prepay duties and taxes, or on a DDU basis where the buyer handles them. Each approach affects pricing strategy and cash flow. Because rates and de minimis thresholds change, check the destination country’s customs authority or use your courier’s landed-cost calculator before setting prices. Accurate product valuation prevents disputes and ensures smooth customs clearance.

VAT on exports from the UK

Zero-rating VAT on exports is possible when you can prove the goods have left the UK. Acceptable evidence includes carrier tracking that shows export, or official customs stamps. For EU shipments after Brexit, the process resembles exporting to any third country.

If you sell through online marketplaces they may report sales and handle some VAT obligations under special schemes. Keep clear records separating domestic, EU and rest-of-world sales. If your annual export volume grows, consider using HMRC’s export VAT refund mechanisms where eligible. Always confirm current VAT notice requirements on GOV.UK, as procedures for evidence and reclaim periods are updated regularly.

Practical step: integrate your accounting software with shipping platforms so export evidence is logged automatically against each order.

Using overseas fulfilment for British startups

Storing stock in fulfilment centres located in target markets can reduce delivery times and simplify customs for individual orders. Goods are exported once in bulk to the overseas warehouse; subsequent customer shipments are treated as domestic within that country.

Popular locations include EU member states and the United States. When moving inventory abroad you must complete an export declaration from the UK and the fulfilment partner usually handles import clearance and any duties at destination. You may need to register for VAT in the destination country if stock value or sales exceed applicable thresholds. Review the platform’s current terms carefully, as storage fees, fulfilment charges and reporting obligations vary.

Advantages include faster shipping and fewer individual customs declarations. Disadvantages include upfront shipping costs to the fulfilment centre and the need for accurate forecasting to avoid excess stock. Start with small test shipments to one location before scaling.

Step-by-step export checklist for new sellers

Obtain an EORI number and, if needed, register for VAT.
Classify products with correct commodity codes using the GOV.UK tariff tool.
Create compliant commercial invoices and packing lists.
Choose shipping method and Incoterms that suit your cash flow and risk preference.
If using overseas fulfilment, select a partner, ship initial stock and complete bulk export paperwork.
Record export evidence for each shipment to support zero-rating of VAT.
Monitor destination country rules for import duties and taxes that your customers may face.
Review processes after the first ten orders and adjust templates or carriers as needed.

Repeat this checklist for every new product or destination market. Many new exporters begin with English-speaking countries outside the EU to gain experience before tackling EU customs procedures.

Common pitfalls and how to avoid them

Missing or inaccurate commodity codes cause the majority of customs delays. Double-check codes against official guidance rather than guessing. Another frequent issue is insufficient export evidence; without it you cannot zero-rate VAT and may face unexpected tax liabilities.

Under-valuing goods to reduce duties risks penalties and seizure. Always declare the true commercial value. When using overseas fulfilment, failing to account for local VAT registration thresholds can lead to sudden compliance demands. Set calendar reminders to review HMRC and Companies House obligations every quarter.

Keep a simple spreadsheet tracking each export batch, destination, value and supporting documents. This habit reduces stress during any future HMRC review.

Frequently asked questions

Do I need an EORI number to export goods from the UK?

Yes, an EORI number is required for most exports outside the UK. Apply for one through GOV.UK before sending your first shipment. The number is used on customs declarations and links to your business details.

Can I zero-rate VAT when exporting products?

You can zero-rate UK VAT on exported goods if you hold valid proof that the products have left the country. Acceptable evidence includes certain carrier reports or official customs documentation. Requirements differ by destination and change, so consult current HMRC guidance.

What is the advantage of using overseas fulfilment centres?

Overseas fulfilment allows you to ship stock in bulk once, then fulfil customer orders locally. This reduces delivery times, lowers per-order customs paperwork and can improve buyer experience. You must still complete UK export formalities on the initial stock movement.

How do I find the correct HS code for my products?

Use the UK Global Tariff tool on GOV.UK to search by product description. Accurate classification determines applicable duties and helps prevent customs holds. If unsure, seek clarification from the tariff helpline before exporting.

Should I sell on DDP or DDU terms when exporting?

DDP means you or your partner handle import duties and taxes, giving the customer a final delivered price. DDU leaves those costs to the buyer. Choose based on your ability to calculate landed costs accurately and your preferred cash-flow impact. Rules and thresholds change regularly.