Europe
Trade terms in United Kingdom: what works and what catches people out
A non-UK seller on DDP must register for UK VAT from the first taxable sale (no threshold) and needs someone in the UK to handle customs declarations. EXW sales out of the UK create export-evidence and registration headaches.
Record last reviewed · Check a route to United Kingdom →
DDP when importing into United Kingdom Usable with conditions ✓ Verified
Can a foreign seller clear the goods and pay import taxes in this country?
Usable with registrations. A business with no UK establishment (NETP) must register for UK VAT if it makes taxable supplies of any value in the UK — the threshold does not apply. It must get someone to deal with customs and complete its import declarations. Alternatively a UK agent can import and supply on its behalf, but the agent's fee carries VAT the seller cannot reclaim.
Sources: HMRC (GOV.UK) · HMRC (GOV.UK) · HMRC (GOV.UK) · International Chamber of Commerce (ICC) · last checked
CIF when importing into United Kingdom Unverified Unverified
Can the seller buy the cargo insurance abroad for goods going into this country?
No CIF barrier is listed for United Kingdom in ICC's January 2025 barrier tables. We have not yet checked national sources, so treat this as unverified.
Sources: International Chamber of Commerce (ICC) · last checked
CIP when importing into United Kingdom Unverified Unverified
Can the seller buy the cargo insurance abroad for goods going into this country?
No CIP barrier is listed for United Kingdom in ICC's January 2025 barrier tables. We have not yet checked national sources, so treat this as unverified.
Sources: International Chamber of Commerce (ICC) · last checked
EXW when exporting from United Kingdom Practically hard Needs review
Can a foreign buyer handle export clearance out of this country?
Exports from the UK: ICC reports that exporters typically need UK VAT and customs registrations, which are hard for non-UK buyers to obtain — another reason EXW suits domestic sales rather than exports. Consider FCA.
Sources: International Chamber of Commerce (ICC) · last checked
FCA when exporting from United Kingdom Unverified Unverified
Are there export-filing traps when the buyer arranges carriage from this country?
No FCA barrier is listed for United Kingdom in ICC's January 2025 barrier tables. We have not yet checked national sources, so treat this as unverified.
Sources: International Chamber of Commerce (ICC) · last checked
FOB when exporting from United Kingdom Unverified Unverified
Are there local quirks with FOB when shipping from this country?
No FOB barrier is listed for United Kingdom in ICC's January 2025 barrier tables. We have not yet checked national sources, so treat this as unverified.
Sources: International Chamber of Commerce (ICC) · last checked
Key facts
- VAT / GST ✓ Verified
Postponed VAT accounting (declaring import VAT on the VAT return instead of paying at the border) is only available to UK VAT-registered businesses.
Sources: HMRC (GOV.UK) · last checked
Sources used on this page
- VAT Notice 700/1: who should register for VAT (section 9, NETPs) — HMRC (GOV.UK)
- Check when you can account for import VAT on your VAT Return — HMRC (GOV.UK)
- Paying VAT on imports from outside the UK — HMRC (GOV.UK)
- National regulatory barriers to the Incoterms® 2020 rules (updated January 2025) — International Chamber of Commerce (ICC)
Snapshot as of December 2024, compiled from ICC national committees. Used as a lead list: facts that rely only on this document are flagged for review until confirmed against national law.
'Needs review' means the fact relies on a secondary source (often ICC's January 2025 barrier list) or an inference we have not yet confirmed against the national law. Spotted an error or a change? Tell us.