Import VAT is charged by reference to the value of the goods concerned as determined under VATA 19941.
HMRC has published guidance regarding the adjustments required to the customs value when calculating the VAT value of imported goods.
Elements comprising the value
The value, for VAT purposes, of imported goods comprises four elements2:
- Ìý
•ÌýÌýÌýÌý a value for import duty purposes determined in accordance with T(CT)A 2018, s 163, namely the 'transaction value4', whether or not any import duty is actually due
- Ìý
•ÌýÌýÌýÌý so far as they are not already included in the transaction value5:
- Ìý
- Ìý
(a)ÌýÌýÌýÌý all taxes, duties and other charges levied either outside or, by reason of importation, within the United Kingdom (except VAT)
- Ìý
(b)ÌýÌýÌýÌý all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods' first destination6 in the United Kingdom.
- Ìý
There are three methods of calculating incidental expenses and importers may use whichever method they prefer7:
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Web page updated on 24 Aug 2024 13:49