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VAT on Imports Print E-mail


The VAT ACT 1994 requires VAT to be charged on imported goods as they enter British borders, acting as an import duty from non EU countries and VAT from EU member states. UK VAT registered entities can claim the duty back as an input credit by treating it as though it has made the supply (sales) and then claiming the input in the same VAT return.

Non EU member countries may register for VAT if supplying electronic services in UK without a fixed establishment in UK.

The value of goods imported can be increased by HMRC if they deem it to be under open market value for the VAT calculation

A business taxable in another EU member state who makes taxable supplies of more than £70k by removing goods from that member state and supplying them in Britain and takes an option to treat those supplies as taking place outside the country where the business is taxed, becomes liable to register for VAT in UK

Any business taxable in UK becomes liable to register for VAT once it acquires relevant goods subject to import VAT to the value of £64k in a calendar year.

Non-EU businesses can claim VAT on goods purchased in UK by using a UK agent.

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