Commercial invoice for Shopify orders from the EU to the UK

Since Brexit, every parcel from the EU to Great Britain crosses a customs border. UK customs reads the commercial invoice to see what's in the parcel, what VAT and duty it owes, and who pays them. This article explains what the invoice needs for orders from a Shopify store in the EU to customers in Great Britain, and the mistakes that get parcels held.

This article isn't legal or tax advice. Check with your carrier or a customs broker when in doubt.

When you need one

• Express couriers such as DHL, UPS, FedEx and DPD ask for a commercial invoice for every parcel with goods. Attach it to the parcel, or upload it when you book the shipment.
• Post. The postal operator makes a CN22 or CN23 customs form with the label. Some ask for a commercial invoice as well. See Do I need a CN23?
• Gifts, samples, replacements and returns need a pro forma invoice instead, because nothing was sold. See Which document do I need?
• Northern Ireland follows EU rules for goods, so parcels from the EU to Northern Ireland need no customs paperwork.

What goes on it

The UK doesn't prescribe a layout. HMRC lists the details it expects, and carriers add a few of their own:

• You, the exporter: company name, address, EORI number and VAT number. If you sell parcels of £135 or less to consumers, also your UK VAT number.
• The customer: name, address and phone number. For a business buyer, their GB VAT number.
• Invoice number and date.
• Each item: a description a customs officer understands, its HS code, its country of origin, the quantity, the unit price and the line total.
• Currency and Incoterm, such as DAP London. See Choosing an Incoterm.
• Shipping costs, net and gross weight and the number of packages.
• Reason for export: sale of goods, gift, sample or return.
• A statement on origin, if your products qualify for zero duty (see below).

VAT: the £135 line

Who pays UK VAT depends on the value of the goods in the parcel:

• £135 or less, to a consumer: you charge UK VAT at checkout, and you need a UK VAT number to do that. The customer pays nothing on delivery.
• Over £135: the customer pays import VAT, any duty and the carrier's fee on delivery, unless you ship DDP.
• A business buyer with a GB VAT number: no VAT is charged; the invoice says the reverse charge applies.

Details in The UK £135 VAT rule for Shopify sellers.

Duty, and the statement on origin

Products made in the EU can enter the UK without duty under the EU–UK Trade and Cooperation Agreement, but only when two things are true:

1. The product meets the agreement's rules of origin. "Made in the EU" isn't always enough.
2. The invoice carries a statement on origin: a fixed sentence from the agreement, with your company name. From €6,000 of qualifying goods in one parcel, it also needs your REX number.

Without the statement, the customer pays the full duty rate on parcels over £135, even for EU-made goods. Parcels of £135 or less pay no customs duty, except on alcohol, tobacco and other excise goods; the UK plans to end that relief by March 2029 at the latest. See Statements of origin.

Mistakes that get parcels held

• Vague descriptions. "Gift", "Accessories" or "Clothing" don't tell customs what the item is. Write "Women's knitted cotton jumper" or "Ceramic coffee mug".
• Missing HS codes or countries of origin. See HS codes explained.
• Values that don't match the order. The invoice should show what the customer actually paid.
• No EORI number. Couriers need it for commercial shipments.
• An invoice that disagrees with the label. The data you entered when buying the label, and the invoice in the pouch, should list the same items, codes and values.

How Borderdesk helps

Borderdesk is a Shopify app for EU and UK shops that ship across the border.

• It checks every product for an HS code, a country of origin and a clear customs description, and suggests HS codes for the ones that are missing.
• It prints commercial invoices with everything above, for many orders at once, including the statement on origin when you turn it on.
• Before you print, it warns about what would hold a parcel to the UK: a missing UK VAT or EORI number, a buyer VAT number that isn't a UK one, or a parcel that needs a REX number.

Borderdesk on the Shopify App Store

Sources

• HMRC, VAT and overseas goods sold directly to customers in the UK
• HMRC, sample commercial invoice
• EU–UK Trade and Cooperation Agreement, Article 56 and Annex 7