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HMRC internal manual

Customs Special Procedures Manual

VAT only IP: general

Import ‘VAT only’ IP may be authorised where a trader imports non–EU 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 or
  • goods are imported from one of the special territories, see GOV.UK.

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

The applicant is not required to be registered for VAT.

With effect from 01 May 2016 there is a mandatory requirement for a guarantee to cover potential and/or actual debts.

All the normal procedures for authorisation, import, movements and discharge apply (including the requirement to submit Bills of Discharge).

Assurance of import VAT only traders is carried out by international trade teams not VAT assurance officers.

Note: if a nil rate of duty by way of preference is available, VAT only IP would not be applicable as any preference available at importation cannot be claimed when goods are entered to IP. In these circumstances an IP entry with duty suspended should be made.

Notice 3001/2015, Annex D, Section 3.2