Commentary

V3.302 Meaning of importation; status of the Crown Dependencies; liability to pay import VAT

Part V3 Supplies, acquisitions and imports

V3.302 Meaning of importation; status of the Crown Dependencies; liability to pay import VAT

Imports and import VAT

V3.302 Meaning of importation; status of the Crown Dependencies; liability to pay import VAT

This paragraph looks in detail at the concept of importation and when a liability to import VAT arises. In particular it examines:

  1.  

    •     the meaning of importation for VAT purposes

  2.  

    •     the status of the Crown Dependencies (the Isle of Man and the Channel Islands)

  3.  

    •     the liability for import VAT

  4.  

    •     the person liable for import VAT

Meaning of importation

Goods removed directly to the UK from another country

For the purposes of UK VAT, goods are imported when1:

  1.  

    (1)     they are declared for a customs procedure (see V3.304) under T(CT)A 2018, Part 1 other than one in (2) below

  2.  

    (2)     in the case of goods declared for a storage procedure (V3.316), a transit procedure (V3.317) or an inward processing procedure (V3.318), a liability to import duty is, or would be, incurred in respect of them under T(CT)A 2018, s 4. This states that, as a general rule, a liability to import duty is not incurred by reference to the importation of the goods2; the liability (and consequently the importation) therefore arises when the goods cease to be covered by that procedure

  3.  

    (3)     in the case of goods which are liable to forfeiture, they become liable to

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