Generally speaking, VAT is payable on all imports at the same rate that would apply to the product or service if supplied in the UK.

Imports from outside the EU

Goods are treated as imports if they have arrived directly from outside the EU or via another EU country without being released for free circulation. Find out which countries are inside and outside the EU for VAT purposes on the HM Revenue & Customs (HMRC) website – Opens in a new window.
You’ll normally have to declare any goods that you import to HMRC and also pay any VAT and duty that’s due. To begin this process, contact the HMRC VAT Helpline on Tel 0845 010 9000. Import VAT and duty must be paid before goods are released by HMRC. Find a downloadable declaration of imports form (C88) on the HMRC website – Opens in a new window.

How to calculate the value for VAT purposes

To calculate the value for import VAT you must add all of the following items to the goods’ value for duty, unless they have already been included:

• all incidental expenses incurred up to the goods’ first destination in the UK, eg commission, packing, transport and insurance
• all such incidental expenses that result from transporting the goods to a further destination within the EU (if that destination is known when you import the goods)
• any customs duties or levies payable on import to the UK
• any excise duties or other charges payable on import to the UK

For further information see Valuations, Declarations and Statements