Import VAT can be reclaimed as input tax subject to normal rules. You can usually reclaim the VAT paid on goods and services purchased for use in your business. If a purchase is also for personal or private use, you can only reclaim the business proportion of the VAT.
Please refer to sections 10 to 13 of VAT Notice 700 ‘VAT guide’ for further information’:
VAT guide (VAT Notice 700)
Please also refer to Revenue and Customs Brief 15 (2020) ‘VAT – Conclusion of review of Import VAT deducted as input tax by non-owners’ for guidance on the correct treatment of import VAT paid by a taxable person who is not the owner of the relevant goods:
Revenue and Customs Brief 15 (2020): VAT – Conclusion of review of Import VAT deducted as input tax by non-owners
If the goods are located in the UK when supplied to your customer then you may need to register and account for VAT on the sale. Please refer to VAT Notice 700/1 ‘Who should register for VAT’ for further information:
Who should register for VAT (VAT Notice 700/1)
In particular, section 9 covers non-established taxable persons (NETP), which is any person who is not normally resident in the UK, does not have a UK establishment and, in the case of a company, is not incorporated in the UK. Paragraph 9.3 states that if you are an NETP and make any taxable supplies in the UK, you must register for VAT in the UK and account for UK VAT to HMRC.