VAT on Imports

Key facts

Import VAT is charged at the same rate as if the goods were sold in the UK (usually 20%).
Since January 2021, all imports from outside the UK attract import VAT.
Postponed VAT Accounting (PVA) lets you account for import VAT on your VAT Return.
You can reclaim import VAT as input VAT if the goods are for business use.

How Import VAT Works

Import VAT is charged on goods entering the UK from any country (including EU countries since Brexit). The VAT is calculated on the customs value plus any customs duty.^[1]

Import VAT = (Customs value + Duty) × VAT rate

How to Pay Import VAT

Two main options:^[2]

Postponed VAT Accounting (PVA) — account for the VAT on your VAT Return instead of paying at the border (recommended)
Pay at the border — VAT is collected by customs (or your freight agent) when goods enter the UK

Postponed VAT Accounting

PVA is available to all VAT-registered businesses importing goods. You include the import VAT in both Box 1 (output) and Box 4 (input) of your VAT Return, making the entry cash-flow neutral.^[2]

Reclaiming Import VAT

If the goods are for business use, you can reclaim the import VAT as input VAT on your VAT Return. You’ll need:

Your C79 import certificate (if paid at border) or monthly PVA statement
The customs entry documentation

Frequently Asked Questions

How is import VAT calculated?

Import VAT is calculated on the customs value of the goods plus any customs duty, at the same VAT rate as if the goods were sold in the UK (usually 20%).

Do I have to pay import VAT at the border?

Not necessarily. VAT-registered businesses can use Postponed VAT Accounting (PVA) to account for import VAT on their VAT Return instead of paying at the border, making it cash-flow neutral.

Can I reclaim import VAT?

Yes, if the imported goods are for business use. You need your C79 import certificate (if paid at the border) or your monthly PVA statement as evidence for your input VAT claim.

Do I pay import VAT on goods from the EU?

Yes. Since January 2021, all imports from outside the UK, including from EU countries, attract import VAT.

Sources

VAT on goods imported from outside the UK — GOV.UK
Postponed VAT accounting — GOV.UK
Customs declarations — GOV.UK