GlossaryEN1 min readUpdated: Jun 26, 2026

VAT on Import

Freight forwarders and importers encounter import VAT as a standard charge alongside customs duty when clearing goods from third countries.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.gov.uk/guidance/vat-on-imports

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Definition & Explanation

Freight forwarders and importers encounter import VAT as a standard charge alongside customs duty when clearing goods from third countries. Unlike domestic VAT, which arises on the first supply within the country, import VAT is levied at the point of entry and is based on the customs value of the goods plus applicable duties and ancillary costs. The rate mirrors that of the equivalent domestic transaction. Businesses with input tax recovery rights can reclaim the amount through their VAT return. Several EU member states offer a deferment scheme that delays payment beyond the date of customs clearance, easing cash-flow pressure for regular importers. Import VAT is distinct from the reverse charge mechanism, which governs intra-EU cross-border B2B supplies and services.

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VAT on Import

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Related Terms

e-dec Import Deactivation

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