Working out the VAT value using the customs value of the imported goods

Valuing goods can be complicated, so if you’re not an importer or clearing agent you may want to get someone to deal with customs for you.

You must base your valuation of your imported goods for VAT on the customs value for duty. You must do this even if there’s no duty payable.

Before you work out the value of import VAT for your imported goods you must first have read Prepare to work out the customs value of your imported goods.

Items you must add to the customs value to arrive at the value for VAT

You must add the following to the customs value:

Commission does not include ‘buying commission’. Buying commission is considered to be a payment for services subject to the business to business rule on the place of supply of services. This means that VAT should be accounted for under the reverse charge procedure.

What ‘incidental expenses’ means when valuing imported goods for VAT

In addition to the examples already given, the term ‘incidental expenses’ also covers items such as:

Where supplies of services qualify for zero rating because they’re supplied in connection with an importation of goods, the cost of those services should be included in the value for import VAT.

In most cases, the services to be included in the VAT value are charged to the importer by a third party, for example, an agent, freight forwarder or hauler. If a particular service is provided by the importer, for example, their own transport, the cost may be left out of the value.