Both directions · reviewed 10 September 2026
VAT and customs basics for EU↔UK climate-tech trade
Written for: Founders shipping equipment, demo units or spare parts between the EU and the UK
Since the UK left the EU customs union and single market, goods moving between the EU and Great Britain are imports and exports, with customs formalities and import VAT.
For a climate-tech company this usually first bites on something small: a demo unit for a trade show, a replacement part for a pilot site, a prototype going to a test facility.
The questions that determine everything else
Before looking up rates, answer four questions: who is the importer of record, what is the commodity code, where do the goods originate, and what is the intended use.
Those four decide the paperwork, the duty position and whether a relief applies. Getting the importer of record wrong is the most expensive mistake, because it decides who owes the tax.
- Importer of record: you, your customer, or a distributor?
- Commodity code: this drives duty and any controls.
- Origin: rules of origin under the Trade and Cooperation Agreement can matter for duty.
- Purpose: temporary movements such as demos and exhibitions may have their own procedures.
Temporary movements are their own topic
Demo equipment, tools and exhibition goods that come back are handled through specific temporary-admission procedures rather than ordinary imports. Using the right procedure avoids paying import tax on something you are taking home again.
Set this up before the shipment leaves, not at the border.
VAT registration is a separate question from customs
Import VAT and VAT registration are not the same thing. Whether you need to register for VAT in the destination country depends on the supplies you make there, and the rules for businesses not established in that country differ from those for local businesses.
If you plan to sell rather than just ship, get advice on the registration position early: it affects pricing and contract wording.
Northern Ireland
Movements involving Northern Ireland follow their own arrangements. If Northern Ireland is in scope for you, treat it as a separate workstream and check the specific official guidance.
Sources
- Import goods into the UK: step by step
UK Government (GOV.UK)
- Export goods from the UK: step by step
UK Government (GOV.UK)
- Trade Tariff: look up commodity codes, duty and VAT rates
UK Government (GOV.UK)
- Access2Markets (EU import and export rules by product)
European Commission
- EU–UK Trade and Cooperation Agreement
European Commission
What this guide does not cover: This guide does not state duty rates, VAT rates or thresholds, and is not customs or tax advice. Look up your commodity code and confirm the position with the official tools above or a customs adviser.
Where this guide fits
Country routes that sequence this work alongside cities, costs and the organisations to contact.
Turn this into your own plan
GreenLaunch matches open funding calls, tenders and pitching opportunities to your company, scores the cities you are weighing up, and drafts the applications and intro emails.