Commentary

V3.313 The rate of VAT charged on imports

Part V3 Supplies, acquisitions and imports

V3.313 The rate of VAT charged on imports

V3.313 The rate of VAT charged on imports

VAT is normally charged at the standard rate1, however certain importations are charged at the reduced rate (see Division V4.4) or the zero rate (see Division V4.2).

Unlawful activity and the charge to tax

The principle of neutrality precludes a generalised differentiation between lawful and unlawful transactions, except where, because of the special characteristics of certain products, all competition between a lawful economic sector and an unlawful sector is precluded. The principle of sufficient proximity states that an activity is not precluded from taxation unless it is closely intertwined with an unlawful activity

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