Import VAT: valuation of goods

HMRC has published new guidance Goods you do not include when valuing for import VAT setting out that, when valuing goods for import VAT purposes, businesses should not include:

• costs that are taxable under the reverse charge or international service arrangements such as royalties, licence fees and buying commissions;
• costs in relation to the transmission and provision of information by satellite, phone, telex or facsimile;
• the buyer’s premium on auctioneer commission; or
• costs for certain software products.

HMRC’s guidance How to value goods for import VAT explains how to value goods when working out the VAT due when importing goods into the UK. The following amounts need to be added together and the total added to the customs value of the goods:

• all charges payable on importation into the UK, such as customs duty and excise duties; and
• the cost of any incidental expenses.