How import VAT works for goods entering the UK since Brexit. Covers postponed VAT accounting, customs duty, and calculating the total cost of imports.
Since the UK left the EU's single market on 1 January 2021, all goods imported into the UK — including from EU countries — are subject to UK customs rules. This means VAT and potentially customs duty are now charged on EU imports that were previously VAT-free.
Import VAT is charged at the same rate as domestic VAT — 20% standard rate for most goods. The VAT is calculated on the customs value of the goods, which includes the cost of goods, shipping, and insurance (CIF value).
UK VAT-registered businesses can use Postponed VAT Accounting to account for import VAT on their VAT return rather than paying it at the border. This improves cash flow significantly for regular importers.
To use PVA, declare it on your customs declaration. HMRC will then include the import VAT on your monthly Postponed VAT Statement.
In addition to VAT, customs duty may apply depending on the type of goods and their country of origin. The UK Global Tariff applies to most imports. Check duty rates on the UK Trade Tariff (GOV.UK).
Total Import Cost
Total = Goods value + Duty + VAT
VAT calculated on (goods + duty + shipping)
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