By
August 8, 2026
Buying and Selling Goods Outside Great Britain: A Guide for UK Businesses
Buying and selling goods internationally can give UK businesses access to new suppliers, lower purchasing costs and customers in markets around the world. However, trading outside Great Britain also brings additional responsibilities involving customs, VAT, import duties and shipping documentation.
Whether your business is importing products into Great Britain or exporting goods overseas, understanding the basic rules can help you avoid unexpected costs and delays.
This guide explains the key considerations for UK businesses buying and selling goods outside Great Britain.
For customs purposes, Great Britain consists of England, Scotland and Wales.
When a business buys goods from a supplier outside Great Britain, the transaction may be treated as an import. When goods are sent from Great Britain to customers in another country or territory, they may be treated as an export.
Different arrangements can apply to movements involving Northern Ireland, so businesses trading with Northern Ireland should check the rules applicable to the particular movement.
If your UK business purchases products from overseas suppliers, you will generally need to consider customs procedures when those goods enter Great Britain.
Before importing, businesses should establish:
These factors determine how the goods are declared and what taxes or duties may become payable.
Businesses involved in importing or exporting goods will commonly need an Economic Operators Registration and Identification (EORI) number.
For movements involving Great Britain, this will generally be an EORI number beginning with GB.
The EORI number identifies your business to customs authorities and is used when submitting customs declarations and completing other customs procedures.
Businesses planning to trade internationally should therefore check whether they need an EORI number before their first shipment.
Goods being imported or exported must normally be classified using the appropriate commodity code.
Commodity codes are important because they help determine:
Using an incorrect commodity code can result in incorrect duty payments or delays at customs.
Businesses should classify their products carefully rather than simply relying on a supplier's suggested code.
When goods are imported into Great Britain, customs duty may be payable.
The amount depends on factors including the type of product, customs value and country of origin.
Some goods may qualify for reduced or zero customs duty under a UK trade agreement if the relevant rules of origin are satisfied.
It is therefore important to check both the applicable tariff and whether preferential treatment is available before calculating the total cost of importing a product.
Import VAT is another major consideration when buying goods from overseas.
Import VAT may be charged when goods enter Great Britain. For VAT-registered businesses, there are mechanisms that can allow import VAT to be accounted for through the VAT return, subject to the applicable requirements.
One important mechanism is Postponed VAT Accounting (PVA).
PVA can allow eligible VAT-registered businesses to declare and recover import VAT through their VAT return rather than paying the import VAT upfront at the border.
This can provide an important cash-flow advantage for businesses importing goods regularly.
The supplier's price is only one part of the cost of importing goods.
Businesses should calculate their landed cost, which may include:
Product cost + shipping + insurance + customs duty + import VAT + customs clearance + handling and delivery charges
Additional costs can significantly affect the profitability of imported products.
For example, a product that appears inexpensive when purchased from an overseas manufacturer may become considerably more expensive once international shipping, customs charges and other fees are included.
Calculating landed cost before placing an order can therefore help businesses price products correctly and protect their margins.
Goods entering or leaving Great Britain generally need to go through customs procedures.
A customs declaration contains information about the shipment, including the importer or exporter, value, origin, commodity classification and customs procedure being used.
Businesses can potentially handle customs declarations themselves, but many use a:
Even where an intermediary completes the declaration, the business should ensure that the information provided is accurate.
Following Brexit, movements of goods between Great Britain and EU countries are generally subject to customs procedures.
A UK business buying goods from suppliers in countries such as Germany, France, Italy, Spain or the Netherlands should therefore consider customs declarations, import VAT and potentially customs duty.
The UK-EU Trade and Cooperation Agreement can allow qualifying goods to benefit from zero tariffs, but this does not mean that every product shipped from the EU automatically has zero customs duty.
The product must satisfy the relevant rules of origin.
For example, a product manufactured outside the EU and subsequently sold by an EU supplier does not automatically become EU-origin simply because it was shipped from an EU country.
Many UK businesses source products from countries such as China, India, Turkey, the United States and other manufacturing markets.
Before purchasing internationally, businesses should investigate:
For certain products, additional UK regulatory requirements may apply before the goods can legally be placed on the market.
UK businesses can also sell products internationally.
When goods are exported from Great Britain, businesses may need to complete export customs procedures and retain evidence that the goods have left Great Britain.
The customer may also have to pay import taxes, duties or customs charges when the goods enter their destination country.
This makes it important to establish who is responsible for these costs before shipping.
Goods exported from Great Britain may qualify for zero-rated UK VAT, provided the relevant conditions are satisfied.
Zero-rating does not simply mean ignoring VAT.
Businesses generally need appropriate evidence showing that the goods were exported within the required conditions and time limits.
Records might include commercial documentation, transport documents and evidence of export.
Businesses should maintain appropriate records in case HMRC requests evidence supporting the VAT treatment.
International Commercial Terms, commonly known as Incoterms, are widely used in international trade.
They help establish responsibilities between buyers and sellers for matters such as transportation, insurance, risk and customs arrangements.
Common Incoterms include:
EXW – Ex Works
The buyer assumes substantial responsibility for transporting the goods from the seller's premises.
FOB – Free on Board
Commonly used for sea freight, with responsibilities divided according to the agreed shipping arrangements.
CIF – Cost, Insurance and Freight
The seller arranges specified freight and insurance to the agreed destination port.
DDP – Delivered Duty Paid
The seller takes responsibility for delivering the goods to the agreed destination, including specified import formalities and duties.
The Incoterm agreed with your supplier or customer can have a significant effect on your costs and responsibilities.
International shipments can require several documents depending on the goods, destination and transport method.
Common documentation includes:
Incorrect or incomplete documentation can cause shipments to be delayed or held by customs authorities.
UK businesses selling goods to EU customers need to consider the import requirements of the destination country.
The shipment may be an export from Great Britain and an import into the EU.
Depending on how the transaction is structured, the seller or customer may be responsible for import VAT and potentially customs duty.
For e-commerce businesses selling relatively low-value goods to EU consumers, the Import One Stop Shop (IOSS) may also be relevant in certain circumstances.
Businesses selling regularly across Europe should establish their VAT and customs responsibilities before expanding into individual markets.
Good record keeping is particularly important for businesses involved in international trade.
Businesses should retain appropriate records relating to:
These records can be important for accounting, VAT returns and demonstrating compliance with HMRC requirements.
International trade becomes much easier when procedures are established from the beginning.
Common mistakes include using incorrect commodity codes, failing to obtain an EORI number, misunderstanding who pays import duties, incorrectly treating exports for VAT purposes and failing to calculate the full landed cost.
Businesses should also avoid assuming that goods shipped from a particular country necessarily originate there for customs purposes.
Trading outside Great Britain can create significant opportunities for UK businesses.
However, successful international trade requires more than finding a supplier or overseas customer. Businesses need to understand customs procedures, VAT, duties, commodity codes, shipping arrangements and documentation.
Before buying goods internationally, calculate the full landed cost. Before selling overseas, determine who will be responsible for import taxes and customs clearance at the destination.
Getting these fundamentals right can help reduce unexpected charges, prevent customs delays and make international trading considerably easier to manage.
This article provides general information and should not be considered tax, customs or legal advice. Rules can vary according to the goods, destination and circumstances of the transaction.
