Exporting to the UK: Opportunities and Challenges for EU Companies

The United Kingdom remains an attractive market for suppliers across many sectors. Companies from the European Union are eager to expand their operations by exporting goods there. On one hand, it offers a genuine opportunity to reach new customers; on the other, it is a market separated by customs, tax, and legal formalities. Our role is to help businesses overcome those barriers and open the door to the UK.

The construction sector stands out as one of the most promising, even surpassing the long popular food industry. In the latter, however, it is worth noting that British consumers tend to prefer milder flavours compared to those common in countries such as Poland. The cosmetics and medical industries are also performing strongly, as are dietary supplements. Interestingly, carpets enjoy consistent demand in the UK as well. Solar panels hold potential too, though face strong competition from low cost imports from China. Meanwhile, the automotive sector, despite its long established strength, has recently shown signs of slowing growth.

Since the UK’s departure from the European Union, trade with the country has become more complex. Exporting now requires compliance with customs and tax obligations, creating additional challenges for EU exporters.

Depending on the type of transaction and the agreed Incoterms, EU exporters often also need to act as the importer in the UK. This requires a GB EORI number, GB VAT registration, and the correct handling of VAT in the UK. For businesses with a broader presence, registering a company in the UK may also be necessary.

There is, however, some good news: most goods with certified EU origin benefit from zero customs duty in the UK, and import VAT is in many cases deferred.

An EU supplier may find themselves acting in a dual role as exporter within the EU and importer into the UK (under Incoterms DDP). For UK buyers, this is convenient, as they receive the goods as if purchased locally, but it shifts the administrative and tax burden onto the EU supplier. If, however, the UK buyer agrees to act as the importer, the process becomes far simpler, as they assume responsibility for bringing the goods into the UK market. Both options need to be considered carefully in line with customer expectations.

For companies planning expansion into the UK, we offer comprehensive support. We help prepare businesses for entry into the market, reviewing product types, distribution channels, and all related customs and tax obligations. Together with our specialist tax advisory partner, we provide tailored solutions to support VAT and EORI registration, as well as ongoing tax compliance in the UK. Where required, we can also assist with setting up a company in the UK. Once everything is in place, Derry Bros agents ensure fast and efficient customs clearance across the supply chain from export within the EU to import into the UK.

If you are considering entering the UK market, we would be pleased to discuss your plans, advise on the best solutions, and help you get started with confidence.