What are the rules for purchases made in the UK and brought back to Gibraltar under the 2026 UK/EU Treaty?
Short answer
Any person flying from the UK with goods in personal luggage valued at EUR 430 or less will not need to declare them and will have paid UK VAT without paying Gibraltar transaction tax. Above EUR 430, goods must be declared at customs and transaction tax paid on the total value. UK VAT cannot be recovered as a matter of UK policy.
Detailed answer
Any person flying to Gibraltar from the UK with goods in personal luggage of EUR 430 or less will not be required to declare those goods. You will have paid UK VAT and not pay transaction tax in Gibraltar. Where the value exceeds EUR 430, you must declare the goods when passing customs at the airport and pay the transaction tax on the total value of the goods. As a matter of UK policy, you will not be able to recover the UK VAT.