V3.306 Valuation for import VAT

V3.306 Valuation for import VAT

Import VAT is charged by reference to the value of the goods concerned as determined under VATA 19941.

Elements comprising the value

The value, for VAT purposes, of imported goods comprises four elements2:

  1.  

    •     a value for import duty purposes determined in accordance with T(CT)A 2018, s 163, namely the 'transaction value4', whether or not any import duty is actually due

  2.  

    •     so far as they are not already included in the transaction value5:

  3.  
    1.  

      (a)     all taxes, duties and other charges levied either outside or, by reason of importation, within the United Kingdom (except VAT)

    2.  

      (b)     all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods' first destination6 in the United Kingdom.

    3.  

      There are three methods of calculating incidental expenses and importers may use whichever method they prefer7:

    4.  
      1.  

        –     the actual costs may be declared at the time of importation

      2.  

        –     nationally agreed rates

      3.  

        –     individually agreed rates negotiated with HMRC

    5.  

      In Dobson8, it was held that, in accordance with Archived EU Regulation 2454/93, art 165(2) (from which the UK legislation was, prior to IP completion day, derived) the value does not include postal charges if the goods in question are non-commercial consignments.

    6.  

      (c)     if at the time of the importation of the goods a further destination for the goods is known, and that destination is within the United Kingdom, all such incidental expenses in so far as they result from the transport of the goods to

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