Special procedure: inward processing

VAT only inward processing

Information on VAT only inward processing.

What is an import VAT only inward processing?

Import VAT only inward processing may be authorised where an importer imports non–UK goods upon which there is no duty liability. This can arise where:

• the rate of import duty is nil by way of the tariff rate or preferential rate being applied
• goods are imported from one of the special territories

The person will need to choose when goods with such a certificate are imported, whether to use VAT only IP or take up the benefits of the preference. They cannot benefit from both.

Import VAT will become due if the goods are discharged to free circulation including Authorised Use/End Use. 

Where an importer is not required to be VAT registered, all procedures for IP authorisation, import, movements, and discharge apply including the requirement to submit Bills of Discharge.