Are you importing goods into the UK and wondering about the VAT (Value Added Tax) you’ll need to pay? Understanding import VAT in the UK can be confusing, but it’s important to know how it works to avoid any penalties or additional costs.

When importing goods into the UK, you’ll need to pay import VAT on top of any import duty you may owe. The VAT rate on imports is the same as the standard VAT rate in the UK.

Import duty exceptions

However, there are some exceptions to this. If you’re importing goods from a country within the European Union (EU), you’ll need to pay VAT at the point of sale instead of at the point of import. This is known as “acquisition VAT” and is charged by the EU member state where the goods are acquired.

You may also be eligible for relief from import VAT if you’re importing goods for business use, such as for resale or as raw materials for manufacturing. In these cases, you can apply for a deferment account or a Customs Special Procedure (CSP) which may allow you to postpone or even avoid paying VAT at the point of import.

The charges

It’s important to note that failure to pay import VAT can result in penalties and interest charges, so we recommend using our import duty calculator before importing goods to make sure you are aware of all the taxes and duties that you need to pay.

So, whether you’re a business owner or an individual, understanding import VAT in the UK is crucial to ensure compliance and avoid any additional costs.

Return of Import duties

In the UK, it is possible to claim a refund of import tax, also known as import VAT, for items that are returned to international sellers. Instead of going through the hassle of submitting a claim to HMRC by yourself, you can do so in just 5 minutes by using our automated online solution here.