Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 08 Oct 2023 07:10:01 GMT by
Hi there, Hope someone can give me an accurate answer. Because even after reading some articles on the HRMC website, I really still can’t understand how to calculate import VAT. I want to import goods from Asia into UK. However, there is a problem that I don't quite understand how import VAT is calculated. Before I go any further, I want to say that I have read this article: I know that: import Duty = Goods CIF Value x Duty rate. Goods CIF Value = Goods Value + Sea Freight Cost + Insurance Cost. But when it comes to Import VAT, I'm not sure whether it also include Customs clearance fees and Container tailer transport cost within UK.. I saw calculating formula from some articles of shipping companies like this: Import VAT = ( CIF Value + Duty ) x VAT Rate Ok, It's easy to understand for me. (But, is this too simple? I'm not sure..) On the other hand, I also checked some articles from some other UK shipping companies, the cost of transport within the UK should also be added into import VAT. So, my question is: 1. import VAT = ( CIF Value + Duty + Customs Clearance Fees + Container inland transport cost ) x VAT Rate 2. import VAT = ( CIF Value + Duty + Customs Clearance Fees ) x VAT Rate 3. import VAT = ( CIF Value + Duty ) x VAT Rate Which calculating formula do you think is correct? For "Container inland transport cost", I mean the container trailer freight that transported from Customs to our company's warehouse within UK. For VAT Rate, I know it's 20% generally with some exceptions. I do appreciate for your help. Thank you!
Posted Mon, 09 Oct 2023 20:35:25 GMT by
Depending on the terms of inclusive of freight and insurance… To keep it simple if the goods were sold exworks, the value of vat would be, Values of goods + freight + clearance charges + duty / divided by 5 (20%) If the goods were sold including freight, Value of goods + clearance charges + duty / divided 5 (20%)
Posted Mon, 16 Oct 2023 08:47:54 GMT by HMRC Admin 2
Hi ericchiu621,

You can find guidance here:

How to value goods for import VAT

Thank you.
Posted Mon, 16 Oct 2023 14:07:55 GMT by
Any Taxes have to be paid for delivery upto the door . Incoterm DAP = Taxes calculated from Invoice value only All other Incoterm = Invoice Value plus any other charges you pay separately to be on the import Entry e.g.: Any Transport and Insurance separately for each consignment to deliver to your designated unloading final delivery address . [details removed by admin]

You must be signed in to post in this forum.