The UK is one of Canada’s largest trading partners in Europe with strong historic and cultural history. Even with the departure of the UK from the EU, the strong trade between Canada and the UK continues. Canadian companies rely on low cost shipping solutions for delivery to London, Manchester, Glasgow and all the UK.
Strengthening your team - even if you are a team of one! Learn about unique options to the UK with regional and country specific specialists. Contact our team for an initial consultation.
A few quick points to consider when shipping to the UK from Canada:
This post provides a deeper dive and explores of the main elements of international shipping from Canada to the UK. Shipping issues to the UK include carriers, customs, UK Canada Free Trade, and prepayment of VAT for e-commerce orders.
Disclaimer: The information in this blog is for general information only.
Sellers exporting from Canada to the UK should note that e-commerce platforms are responsible for collecting VAT directly from Canadian sellers. Consolidate and ship direct to the UK from delivery via DPD. Contact our team for details.
The UK VAT arrangement applies Value Add Tax for all online orders from Canada to the UK individuals*.
Sellers must register and collect UK VAT for orders** up to £135 (approximately $220 CAD). The value of £135 covers only the value of the goods (i.e. transaction value) and excludes shipping costs.
VAT collection for UK orders from Canada:
*Shipping from Canada to UK Businesses
The online marketplace must charge and account for VAT at the point of sale, unless the consignment is abusiness to business sale and the customer has given their UK VAT registration number. If shipping to registered business, the businesses UK VAT registration number must be noted on the invoice.Sellers can verify the businesses UK VAT number using the following website: https://www.gov.uk/check-uk-vat-number.
A sample VAT statement for orders to UK registered businesses: "Customer to account for VAT to HMRC:UK business customer: _______"
** Package value versus individual orders
The rules related to the collection of VAT apply to the value of the package being sent, not to individual orders or items in the package.
Sellers from Canada are required to keep records to ensure the correct application of VAT. Shippers should be aware that the UK's default Value Added Tax rate is 20% but less for some items, including books, food and Childrens clothes.
Canadian shipping platforms such as Shopify, BigCommerce and Shopify had added functionality to facilitate this change.eBay will add VAT for all sales made by Canadian sellers to the UK on the final sale amount.
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The Canada-U.K. TCA provides Canadian and UK businesses with preferential access for goods shipped between both countries.
See sample form to declaration of origin (Fillable PDF to download). Note that while the regulations do not mandate a specific format. It is recommended also including to include a certification statement on the invoice to ensure preferential duty free consideration at time of import.
Canada Post is the best choice for individuals shipping small non urgent parcels to the UK. Shipments sent via Canada Post are imported and delivered to The UK via Royal Mail.
Canada Post shipments to London, Manchester, Glasgow, and all The UK are imported and delivered by Royal Mail.
FedEx and UPS are North America's largest carriers and, along with DHL, offer reliable express delivery from Canada to the UK.
Fedex and UPS Canada Delivery Options to the UK include:
Purolator Courier is a leading Canadian domestic carrier. Purolator provides delivery to the UK via partner carriers, such as UPS. Purolator is a division of Canada Post.
Below is useful information on HM Revenue and Customs clearance processes for shipping parcels from Canada to the UK. The information is provided for general reference only as UK customs regulations are subject to change.
The commercial invoice value is usually accepted as the normal price, but if a preferential arrangement has been established between the overseas supplier and the importer, or an unrealistic value has been declared, HM Revenue and Customs (HMRC) reserves the right to assess a fair market value for duty purposes.
Sending parcels from Canada to the UK requires clearly defined commodity descriptions and value. UK Custom considers the include Cost, Insurance, Freight (CIF) for duty assessment. When sending international shipments to the UK, ensure the commercial invoice includes a clear description of the item(s) being sent and the reason for export. Also, it should be noted that the value is a “CIF value.”
Companies who send low value international shipments from Montreal to the United Kingdom can take advantage of the “de-minimus limit” for relief from payment of customs duty (below £135). Note that Value Added Tax/ VAT is applicable even if goods may be duty free.
H.M. Customs are getting stricter on enforcing the correct declared value. When shipping to the UK, be sure to include supporting documents that might be needed in case UK Customs challenges the declared value. See our blog: Valuation for shipments to the UK.
For valuation of your package to the UK, the most common method is known as the '"transactional value." Simply, what you paid or sold for the item is what should be declared to customs.
For companies who send sample shipments, they should be aware of the criteria necessary to qualify for exemption from duty and VAT:
The UK is a major shipping destination from Canadian e-commerce merchants using on-line shopping platforms including Shopify, Big Commerce, Wix and other sites. Canada Post offers discounts via such e-commerce shipping platforms and is the lowest cost choice for small parcels.
As mentioned above, online orders to the UK must be shipped with prepaid VAT via the online platforms - such as Shopify and eBay.
Jet Worldwide is building international shipping solutions for Shopify, Canada's leading e-commerce platform. Building on Jet Worldwide’s decades of Canadian cross-border parcel shipping experience, our team is currently developing Shopify-integrated solutions for shipping to the UK and the entire European Union, allowing businesses to “self-fulfill” their orders.
For updates on the latest international shipping solutions for Canadian online orders, connect with Jet Worldwide’s e-commerce team.
Companies who wish to send an international shipment to the United Kingdom containing commercial or “Salesman’s Samples” should note this clearly on the commercial invoice. The importation of such samples may qualify for duty relief but may be subject to special handling such as a Temporary Import. Such special procedures will result in extra clearance costs and potential clearance delays.
Articles sent as "Unsolicited gifts" are acceptable and will be allowed entry free of any duty or VAT providing the shipment is valued at less than 40 UKL/ $70CD, consigned to an individual, and are individually wrapped. The parcel may contain multiple gifts as long as the individual parcels enclosed are individually tagged with the recipient's name, are individually wrapped and the value does not exceed the per person limit of 40 UKL (around $70 CD)
Shipments consigned to companies as gifts for an individual may be denied entry as gifts and will be subject to full duty and VAT.
To qualify for duty/tax free status, the gift:
Jet Worldwide offers bulk H.M. Customs clearance, warehousing, pick/pack and low cost ground delivery solutions to the UK and across Europe. Pending Brexit, we have developed solutions for delivery to the EU from the UK via bonded transfer and distribution capabilities in the Netherlands and France.
Contact our team for rates and information on UK and European shipping and last mile delivery solutions.
Contact our team for rates and information on sending your personal effects to the United Kingdom from Canada.
When shipping personal effects to the UK, the goods must first be approved by HM Customs (via a unique number) prior to shipping
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