What Is Import VAT?
Import VAT is Value Added Tax charged on goods brought into the UK from outside the country. It's collected by HMRC at the border (or through your customs agent) and is separate from any import duty.
When Does Import VAT Apply?
Import VAT applies to:
- Goods imported from outside the UK (including the EU, since Brexit)
- Goods worth more than £135 (for most commercial imports)
- Some goods regardless of value (alcohol, tobacco, etc.)
If you're VAT-registered, you can usually reclaim import VAT on your VAT return.
How to Calculate Import VAT
Import VAT = (Value of goods + Shipping cost + Insurance + Import Duty) × VAT rate
Example:
- Goods value: £5,000
- Shipping: £800
- Insurance: £50
- Import duty (5%): £292.50
- Total for VAT: £6,142.50
- Import VAT (20%): £1,228.50
Can I Reclaim Import VAT?
If you're VAT-registered:
- Yes. Use your C79 certificate (issued monthly by HMRC) to reclaim import VAT on your VAT return.
- Keep all commercial invoices and import paperwork.
If you're not VAT-registered: No. The import VAT is a cost to your business.
Postponed VAT Accounting (PVA)
Since Brexit, UK VAT-registered businesses can use Postponed VAT Accounting for most imports:
- You declare and reclaim import VAT on the same VAT return.
- No cash flow impact — you don't pay VAT at the border.
- You must still account for it correctly.
To use PVA:
- Be VAT-registered.
- Include the import VAT on your VAT return.
- Your customs agent or freight forwarder can usually handle the paperwork.
Common Questions
Do I pay import VAT on gifts? Gifts worth more than £39 from outside the UK can attract import VAT, and customs duty can apply above £135. Check GOV.UK for the current gift rules.
Do I pay import VAT on samples? Commercial samples may qualify for relief if they're low value and clearly marked. Check HMRC guidance.
What about the EU? Since Brexit, EU goods are treated the same as goods from China or the USA for VAT purposes.
Import VAT Checklist
- ☐ VAT-registered? Registration is compulsory once your taxable turnover passes the GOV.UK threshold (currently £90,000).
- ☐ Set up Postponed VAT Accounting (if VAT-registered).
- ☐ Ensure your EORI number is active.
- ☐ Keep all C79 certificates for VAT reclaim.
- ☐ Use a customs agent who understands PVA.
Need help with import VAT? Carrgo handles customs clearance and can advise on PVA. Get a quote.
Disclaimer: This guide is for general information only and is not tax, legal or customs advice. VAT rules change — always verify with GOV.UK or your accountant.