Value Added Tax (VAT)
Import VAT is a tax applied to goods when they are brought into the UK from outside the UK customs territory. It is charged at the same rate as domestic VAT (e.g. standard, reduced, or zero rate), depending on the type of goods being imported.
Import VAT is usually calculated based on the customs value of the goods, including the cost of the goods, shipping, insurance, and any applicable customs duty.
It is typically payable at the point of import, but UK VAT-registered businesses can instead use Postponed VAT Accounting (PVA) to account for import VAT on their VAT return, rather than paying it upfront. This helps improve cash flow and avoids delays at the border.