{"id":161274,"date":"2025-04-15T15:03:56","date_gmt":"2025-04-15T14:03:56","guid":{"rendered":"https:\/\/www.international-logistics-group.com\/uk-en\/?p=161274"},"modified":"2025-11-26T16:28:23","modified_gmt":"2025-11-26T16:28:23","slug":"a-guide-to-uk-market-entry-for-canadian-brands","status":"publish","type":"post","link":"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/a-guide-to-uk-market-entry-for-canadian-brands-161274\/","title":{"rendered":"A Guide to UK Market Entry for Canadian Brands"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull has-white-ter-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-cover is-light has-custom-content-position is-position-top-left alignfull p-0 image-50 image-right\" style=\"min-height:500px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-0 has-background-dim\" style=\"background-color:#998d82\"><\/span><img decoding=\"async\" width=\"1000\" height=\"667\" class=\"wp-block-cover__image-background wp-image-9051\" alt=\"Liberty London\" src=\"https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2022\/12\/Liberty-2.jpg\" style=\"object-position:76% 46%\" data-object-fit=\"cover\" data-object-position=\"76% 46%\" srcset=\"https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2022\/12\/Liberty-2.jpg 1000w, https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2022\/12\/Liberty-2-300x200.jpg 300w, https:\/\/www.international-logistics-group.com\/uk-en\/wp-content\/uploads\/sites\/3\/2022\/12\/Liberty-2-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><div class=\"wp-block-cover__inner-container is-layout-flow wp-block-cover-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column pr-6 is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<div class=\"post-banner-content\">\n    <p class=\"post-banner-content__author\"><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/author\/sclifford\/\" class=\"author__avatar\" rel=\"author\"><img alt='ILG Author Simon Clifford' src='https:\/\/secure.gravatar.com\/avatar\/256b12dfc78709ec3711a30ba8087541c3291845305422452dfe82c6f3c07c6e?s=32&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/256b12dfc78709ec3711a30ba8087541c3291845305422452dfe82c6f3c07c6e?s=64&#038;d=mm&#038;r=g 2x' class='avatar avatar-32 photo' height='32' width='32' \/><\/a><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/author\/sclifford\/\" class=\"author__name\" rel=\"author\">Simon Clifford<\/a><span class=\"author__separator\"><\/span><span class=\"post-banner-content__date\">15 Apr 2025<\/span><\/p>\n    <h1 class=\"post-banner-content__title\">A Guide to UK Market Entry for Canadian Brands<\/h1>\n<\/div>\n\n\n<p class=\"pt-3 has-black-color has-text-color has-link-color wp-elements-67f5326cbedcee45efe2f05964624e1d\">Canada\u2019s traditional export routes have been radically changed in just the first quarter of 2025. US tariffs on Canadian products might have you looking for alternative markets, and if so, the UK is a great place to start.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group pt-4\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p>The UK and Canada share more than just a language. We have a long, stable trading relationship that\u2019s only growing stronger. We have similar product standards and indirect tax systems. Plus, the UK is the <a href=\"https:\/\/simplyvat.com\/blog\/a-canadian-sellers-guide-to-selling-in-europe-2\/?utm_source=ILG&amp;utm_medium=Blog&amp;utm_campaign=Canada&amp;utm_content=UK_Guide\" target=\"_blank\" rel=\"noreferrer noopener\">stepping stone to Europe<\/a>. The infrastructure built by our logistics, VAT and other service providers can therefore be relied upon to help you expand further into Europe.<\/p>\n\n\n\n<p id=\"why-export\">VAT, compliance and fulfillment make starting up in the UK a little more complicated than just making sales, but that\u2019s why we wrote this guide. This is a walkthrough of everything you need to know as a Canadian brand launching into the UK. From <a href=\"https:\/\/simplyvat.com\/vat-for-canadian-sellers\/?utm_source=ILG&amp;utm_medium=Blog&amp;utm_campaign=Canada&amp;utm_content=UK_Guide\" target=\"_blank\" rel=\"noreferrer noopener\">VAT essentials<\/a> to logistics strategies, this is your guide to UK market entry, done right!<\/p>\n\n\n\n<p><strong>Jump to:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#why-export\">Why Export from Canada to the UK?<\/a><\/li>\n\n\n\n<li><a href=\"#uk-require\">What does the UK require of Canadian Businesses?<\/a><\/li>\n\n\n\n<li><a href=\"#product-standards\">UK Product Standards<\/a><\/li>\n\n\n\n<li><a href=\"#shipping-from-canada\">Shipping from Canada to the UK<\/a><\/li>\n\n\n\n<li><a href=\"#fulfillment-uk-and-eu\">Fulfillment from Within the UK and EU<\/a><\/li>\n\n\n\n<li><a href=\"#trusted-partner\">Your Trusted UK and EU 3PL Partner<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Why Export from Canada to the UK?<\/h2>\n\n\n\n<p>UK consumers love to shop online, and e-commerce continues to see year-on-year growth. In 2024, <a href=\"https:\/\/analyzify.com\/statsup\/uk-ecommerce\" target=\"_blank\" rel=\"noreferrer noopener\">89%<\/a> of us had bought something online, and online retail sales were valued at \u00a3127bn (the highest recorded outside of Covid). Plus, given the current political climate, many UK consumers <a href=\"https:\/\/www.reddit.com\/r\/BuyCanadian\/comments\/1iwapiv\/are_there_any_canadian_brands_we_can_buy_in_the\/\" target=\"_blank\" rel=\"noreferrer noopener\">are looking<\/a> for Canadian goods to replace products imported from the USA.<\/p>\n\n\n\n<p>If you\u2019re an Amazon seller, you\u2019ll have little competition from other North American brands. Few Amazon merchants sell internationally &#8211; less than <a href=\"https:\/\/www.marketplacepulse.com\/articles\/69-of-amazon-sellers-sell-in-just-one-marketplace\" target=\"_blank\" rel=\"noreferrer noopener\">1% of US<\/a> merchants sell outside North America. Plus, Amazon\u2019s UK store is the 4<sup>th<\/sup> largest outside the USA by web traffic, meaning a large market with little competition.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tariff-Free Trade Agreements<\/h3>\n\n\n\n<p>The UK-Canada Trade Continuity Agreement (TCA) came into force on April 1<sup>st<\/sup>, 2021. The TCA was negotiated to avoid any disruption in trade between Canada and the UK due to Brexit. Most of the agreement reflects the Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU.<\/p>\n\n\n\n<p>Expanding into a new market can be a risky proposition when you factor in the additional burden of tariffs but TCA makes exporting 98% of Canadian-origin goods to the UK tariff-free. Plus, <a href=\"https:\/\/ised-isde.canada.ca\/site\/mutual-recognition-agreements\/en\/canada-and-united-kingdom\" target=\"_blank\" rel=\"noreferrer noopener\">conformity assessment bodies<\/a> in Canada can assess your products for the UK\u2019s regulations, making it cheaper to prepare your goods for UK consumers.<\/p>\n\n\n\n<p>The best news is that TCA laid the foundation for a deeper free trade agreement, Canada-United Kingdom Free Trade Agreement (CUKFTA). CUKFTA negotiations were shelved a few years ago, but given the events of the first quarter of 2025, all parties involved have expressed interest in picking them back up again. You could establish your business in the UK now and be rewarded with even more favorable exporting conditions in the coming years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"uk-require\">From the UK to the Rest of Europe<\/h3>\n\n\n\n<p>If your end goal is to reach customers all over Europe, the UK makes a great place to start. Whilst the UK is no longer in the EU, the European Union is &nbsp;our neighbor and <a href=\"https:\/\/en.wikipedia.org\/wiki\/List_of_the_largest_trading_partners_of_the_United_Kingdom\" target=\"_blank\" rel=\"noreferrer noopener\">largest trading partner<\/a>. Having previously been a Member State, we\u2019re used to things like EU regulation, logistics and VAT, and we now work closely alongside EU countries. Once you\u2019re established in the UK, you\u2019ll be working with partners who share a language with you and can use their expertise and resources to help you expand into the rest of Europe.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What does the UK require of Canadian Businesses?<\/h2>\n\n\n\n<p>For most Canadian businesses, getting started in the UK is relatively simple. You won\u2019t need to establish a UK business (like a limited company) for example, unless you want a physical business presence here or have larger scale plans, like hiring people.<\/p>\n\n\n\n<p>You\u2019ll need an <a href=\"https:\/\/simplyvat.com\/eori\/?utm_source=ILG&amp;utm_medium=Blog&amp;utm_campaign=Canada&amp;utm_content=UK_Guide\" target=\"_blank\" rel=\"noreferrer noopener\">Economic Operator Registration and Identification<\/a> (EORI) number to import anything into the UK. EORI numbers help identify all the businesses involved in a customs transaction. Great Britain (GB) and Northern Ireland (XI) have different EORI numbers, despite both being the United Kingdom. This is because Northern Ireland is still in the EU customs union for goods.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do Canadian Businesses need to Register for UK VAT?<\/h3>\n\n\n\n<p>As a Canadian business selling goods to consumers, whether you need to register for VAT in the UK will depend on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Where your goods are at the point of sale<\/li>\n\n\n\n<li>Where you\u2019re selling them (on your own website or an online marketplace)<\/li>\n<\/ul>\n\n\n\n<p>The UK has a <a href=\"https:\/\/www.gov.uk\/guidance\/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk#goods-that-are-outside-the-uk-at-the-point-of-sale\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a3135 consignment value threshold<\/a>, which determines the point at which the seller is responsible for the VAT on a shipment. The \u00a3135 is the \u201cintrinsic value\u201d of the consignment, which is the value of the goods you\u2019re shipping (not including any other costs like transport or insurance).<\/p>\n\n\n\n<p>The table below shows your VAT responsibilities for Great Britain, not Northern Ireland.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td><\/td><td><strong>Sold on your own website<\/strong><\/td><td><strong>Sold on an online marketplace<\/strong><\/td><\/tr><tr><td><strong>Goods in GB at point of sale<\/strong><\/td><td><\/td><td>You&#8217;ll need to register for VAT.<\/td><td>The marketplace collects and remits the VAT to HMRC, but you\u2019ll need to register for GB VAT because you own the goods held in Britain. The marketplace is considered the Deemed Supplier and you are making a zero-rated supply of goods to them. This transaction needs to be reported to HMRC via the VAT return.<\/td><\/tr><tr><td><strong>Goods outside GB<\/strong> <strong>at point of sale<\/strong><\/td><td>&lt; \u00a3135<\/td><td>You&#8217;ll need to register for VAT.<\/td><td>You don\u2019t need to register for VAT. The marketplace will collect and remit the VAT on your behalf.<\/td><\/tr><tr><td><strong>Goods outside GB<\/strong> <strong>at point of sale<\/strong><\/td><td>&gt; \u00a3135<\/td><td>You decide who will be the Importer of Record: you or your customer. If you are the Importer of Record, then you have to register, then collect and remit the VAT.<\/td><td>You decide who will be the Importer of Record: you or your customer. If you are the Importer of Record, then you have to register, then collect and remit the VAT.<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\">Do Canadians need to Charge UK Customers VAT?<\/h3>\n\n\n\n<p>Once you\u2019re registered for VAT, you need to start collecting VAT from your customers so you can pass it to HMRC (the British Tax Authority). One key difference between Canada and the UK is that we include VAT in the listed price, unless otherwise specified.<\/p>\n\n\n\n<p id=\"product-standards\">You\u2019ll need to work out which VAT rate applies to your products and add that amount to your display prices. For example, if you want to sell a handbag worth \u00a3200 to a British customer, the standard rate of VAT in the UK is 20%, so you would list the handbag for \u00a3240.<\/p>\n\n\n\n<p>For a more comprehensive look at UK VAT (including how to register or get a refund) download the complete guide <a href=\"https:\/\/hubspot.simplyvat.com\/country-vat-guides\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">UK Product Standards<\/h2>\n\n\n\n<p>Goods imported into the UK have to meet three types of product standards:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Product marking standards<\/li>\n\n\n\n<li>Labelling standards<\/li>\n\n\n\n<li>Marketing standards<\/li>\n<\/ul>\n\n\n\n<p>The UK Conformity Assessment (UKCA) marking is placed on products to show that they meet the standards required in UK legislation. Which rules apply depends on what category your products fall into. You can get detailed information <a href=\"https:\/\/www.gov.uk\/guidance\/using-the-ukca-marking\" target=\"_blank\" rel=\"noreferrer noopener\">here.<\/a> If you\u2019re selling goods to Northern Ireland, the EU customs union applies, and the requirements change again to the <a href=\"https:\/\/single-market-economy.ec.europa.eu\/single-market\/ce-marking_en\" target=\"_blank\" rel=\"noreferrer noopener\">CE mark<\/a>.<\/p>\n\n\n\n<p id=\"shipping-from-canada\">Product labels in the UK don\u2019t have any single requirement, except that they\u2019re not misleading. Otherwise, only precious metals, footwear, food and drink and children\u2019s products have <a href=\"https:\/\/www.gov.uk\/product-labelling-the-law\" target=\"_blank\" rel=\"noreferrer noopener\">specific labelling rules<\/a>.<\/p>\n\n\n\n<p>Product marketing standards in the UK and Canada have a similar foundation: marketing has to be clear, accurate and not misleading. In the UK advertising is regulated by the Advertising Standards Authority (ASA) and they cover all media, from newspapers to social media. Just like labelling, some product categories have specific marketing rules in the UK, <a href=\"https:\/\/www.gov.uk\/government\/collections\/marking-labelling-and-marketing-standards-for-imports-and-exports\" target=\"_blank\" rel=\"noreferrer noopener\">like wine and beer<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Shipping from Canada to the UK<\/h2>\n\n\n\n<p id=\"fulfillment-uk-and-eu\">Whenever you\u2019re importing goods into the UK you\u2019ll have to deal with customs duty and import VAT. Customs duty is a percentage added on the total value of your shipment \u2013 the value of the goods plus added costs like shipping and insurance. The amount of duty depends on the commodity code of your product. Thanks to TCA, most Canadian-origin goods can be exported to the UK duty-free (meaning you skip an additional fee of up to 12%).<\/p>\n\n\n\n<p>Import VAT is calculated based on the value of the goods plus costs, plus duties. If the standard rate of VAT applies to the goods you\u2019re importing, you\u2019ll add another 20% to the cost of the import.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fulfillment from Within the UK and EU<\/h2>\n\n\n\n<p>Customs Duty and <a href=\"https:\/\/simplyvat.com\/blog\/duty-deferment-and-import-vat-payments\/?utm_source=ILG&amp;utm_medium=Blog&amp;utm_campaign=Canada&amp;utm_content=UK_Guide\" target=\"_blank\" rel=\"noreferrer noopener\">Import VAT<\/a> quickly rack up, especially if you\u2019re importing individual consignments. It might be practical whilst you\u2019re testing the waters in the UK &#8211; but long term you might want to consider a UK or EU-based logistics partner. Bulk imports and local distribution reduce risk, avoid costly tariffs and speed up deliveries.<\/p>\n\n\n\n<p id=\"trusted-partner\">It\u2019s easier to meet the expectation of the average UK consumer for speedy delivery if you\u2019re not shipping directly from Canada. Faster delivery times make you more competitive and make delivery of your product more sustainable. It also opens you up to more efficient retail opportunities within the UK and EU, making your brand accessible wherever your customer shops.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/insights\/how-to-effectively-navigate-ecommerce-returns-9499\/\">Returns are unavoidable<\/a>, but if you get them right, you\u2019ll win repeat customers. Having an in-market 3PL partner will move your returns process closer to the customer. They\u2019ll get faster refunds or replacements, and you\u2019ll have swifter re-stocking and better visibility of where your products are.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Your Trusted UK and EU 3PL Partner<\/h2>\n\n\n\n<p>If you\u2019re looking for opportunities outside of the US, the UK and EU markets have a lot to offer and working with an experienced 3PL in those markets is key to your growth. ILG has 30 years of omnichannel fulfillment expertise, with <a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/about-us\/warehouses\/\" target=\"_blank\" rel=\"noreferrer noopener\">12 strategically placed facilities<\/a> across the UK and EU.<\/p>\n\n\n\n<p>We specialize in fulfillment for high-growth brands and work with some of the biggest names in beauty, fashion, wellbeing and lifestyle and partner with experts in VAT and compliance to help get your brand to market as easily and cost efficiently as possible.<\/p>\n\n\n\n<p>Find out more about our <strong><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/fulfilment-services\/fulfillment-for-canadian-brands\/\">fulfillment for Canadian brands<\/a><\/strong> here or <strong><a href=\"https:\/\/www.international-logistics-group.com\/uk-en\/fulfilment-services\/fulfilment-enquiry\/\">get in touch<\/a><\/strong> to discuss your UK and EU expansion needs today.<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group mb-2 p-5 pb-2 pt-5 mt-5 has-blue-light-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h3 class=\"wp-block-heading\" id=\"your-details\">Contact Us<\/h3>\n\n\n<script>\n    hbspt.forms.create({\n        region: \"eu1\",\n        portalId: \"25578978\",\n        formId: \"105eb6ef-6de3-4ea7-9870-a2a5e1091024\"\n    });\n<\/script>\n<\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada\u2019s traditional export routes have been radically changed recently and the UK market could be a good alternative to the US. Read our guide to UK market entry.<\/p>\n","protected":false},"author":39,"featured_media":9051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20,38,100],"tags":[],"class_list":["post-161274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-tips","category-fulfilment-services","category-eu-fulfilment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Guide to UK Market Entry for Canadian Brands | ILG<\/title>\n<meta name=\"description\" content=\"Canada\u2019s traditional export routes have been radically changed and the UK market could be a good alternative. 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