Commentary

V7.247 VAT on imports and acquisitions

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.247 VAT on imports and acquisitions

Part V7 Tax planning | Commentary

V7.247 VAT on imports and acquisitions

In some situations, the rules regarding VAT and imports can be quite complicated – for example, temporary imports and goods to be repaired in the UK and re-exported, etc. The aim of this section is to consider only the main practical points concerning VAT on the importation of overseas goods, which will be relevant to the vast majority of import transactions.

To clarify the principles explained above, see Examples 1 and 2 to illustrate the different VAT treatment of goods entering the UK from an EU and non-EU country.

Example 1

John is registered for VAT in the UK – his main activity is to import plant pots and sell them to garden centres throughout the north of England. He has bought 500 plant pots for £10 each

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