UK Trade Tariff: VAT
Published 1 January 2009
© Crown copyright 2009
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1. VAT at importation
1.1 Legal provisions
VAT is chargeable on the importation of goods into the UK. The law governing VAT in the UK is contained in the Value Added Tax Act 1994 and various orders and regulations made under that Act. The tax is charged and payable as if it were a duty of customs and many of the provisions of the Community Customs Code (EEC) 2913/92, Implementing Regulations (EEC) 2454/93 and the Customs and Excise Management Act 1979 apply to VAT in relation to imported goods.
1.2 Liability to VAT
Most goods are liable to tax at the standard rate and others are zero-rated. Throughout the UK Trade Tariff VAT liability is indicated in column 7 against each item line by code letters.
Code letters and their meanings
| Code | Meaning |
|---|---|
| S | Goods are liable to VAT on importation at the standard rate of 20% introduced on 4 January 2011. |
| Z | Goods are liable to VAT on importation at the zero rate (0%). Where an item line may be liable to VAT at more than one rate (for example, clothing which is liable at the standard or zero rate depending upon size) the alternatives are indicated (for example, S/Z). In these cases reference should be made to the various VAT leaflets which give guidance on liability. A leaflet listing VAT publications is obtainable from local VAT offices. |
| A | Goods are liable to VAT at importation at an effective rate of 5%. This code letter is intended to facilitate the use of DTI for goods which would otherwise have to be entered manually. It enables goods which would normally have the standard rate of VAT applied to a reduced value (producing an effective VAT rate of 5%), to be entered by DTI. It may only be used for DTI entries. |
2. VAT at exportation
2.1 Liability to VAT
Exports are generally zero-rated (in other words, nil rate of VAT applies) providing evidence of export is held and certain conditions are fulfilled.
2.2 Further information
Information on these conditions, the type of export evidence which is satisfactory and other matters relating to VAT on exports is contained in VAT Notice 703: export of goods from the UK.
3. VAT - miscellaneous
3.1 Increases and decreases in the rate of VAT
The Value Added Tax Act 1994 section 2(2) empowers the Treasury, by Order, to increase or decrease the standard rate of VAT by up to 25% of that rate.
Read about VAT valuation.