UK VAT only. Uses HMRC rules, checked 22 October 2026.How import VAT is worked out
Import VAT is charged at the rate the goods would carry if they were sold in the UK: 20% for most goods, 5% or 0% for some. The value it is charged on is built up in three steps.
Say you import goods costing £1,000, pay £150 to ship and insure them to the UK, and the duty rate for their commodity code is 4%.
Customs value£1,000 + £150 = £1,150.00
Customs duty£1,150 × 4% = £46.00
Value for import VAT£1,150 + £46 = £1,196.00
Import VAT£1,196 × 20% = £239.20
Landed cost£1,150 + £46 + £239.20 = £1,435.20
If you are VAT registered you get the £239.20 back, so the goods really cost you £1,196.
What goes into the customs value
The customs value is usually the price you paid plus the cost of transport and insurance up to the place the goods enter the UK. Costs after the border are left out of the customs value, but they are added back for VAT if they are part of getting the goods to their first destination in the UK, such as port handling or haulage to your warehouse.
The duty rate depends on the goods and where they were made. Look up the commodity code in the Trade Tariff: many goods carry 0%, and a trade agreement can bring the rate down for goods that meet its rules of origin.
If your invoice is in another currency, convert it at HMRC's exchange rate for the month of import.
Postponed VAT accounting
If you are VAT registered, you do not have to pay import VAT at the border. With postponed VAT accounting you declare it on your VAT return instead:
- Box 1: the import VAT, from your monthly postponed import VAT statement
- Box 4: the same amount, reclaimed under the normal rules
- Box 7: the value of the imports, without VAT
Box 1 and Box 4 cancel out for most businesses, so the import VAT never costs you anything in cash. Without postponed accounting you pay at import and reclaim it later with your import VAT statement.
Parcels of £135 or less
Goods sold to consumers in Great Britain in a consignment worth £135 or less do not have import VAT charged at the border. The overseas seller, or the online marketplace, charges UK VAT at the point of sale instead. Transport and insurance are left out of the £135 unless they are included in the price and not shown separately.
This calculator is for goods worth more than that, and for any goods you import for your own business.
Northern Ireland
Goods brought into Northern Ireland from outside the EU follow EU rules for import VAT. This calculator uses the rules for Great Britain.
Questions
Is import VAT charged on the shipping cost?
Yes. Shipping and insurance up to the UK border are part of the customs value, and transport after the border to the goods' first destination in the UK is added for VAT. So import VAT is charged on more than the price of the goods.
Is import VAT charged on customs duty?
Yes. Duty is added to the customs value before the VAT is worked out, so you pay VAT on the duty too.
Can I reclaim import VAT?
If you are VAT registered and the goods are for your business, yes, under the normal rules. With postponed VAT accounting you declare and reclaim it on the same return. Otherwise you reclaim it using your import VAT statement as evidence.
Do I pay import VAT on goods under £135?
Not at the border if the goods were sold to you as a consumer in a consignment of £135 or less: the seller should have charged UK VAT when you bought them.