IMPS01200 - Introduction: law and regulations
UK law
New UK customs law
The GB Customs regulations since 01/01/2021 are
- Taxation (Cross-Border Trade) Act 2018
- The Customs (Import Duty) (EU Exit) Regulations 2018
- The Customs (Export) (EU Exit) Regulations 2019
Primary law
The main legal provisions governing import VAT are in the VAT Act 1994. For a summary of key primary legislation concerning import VAT, proceed to use IMPS09000. You should note that the effect of section 16 of the VAT Act 1994 is that most customs and excise legislation applies to import VAT, except where specifically dis-applied through secondary legislation. Most notably in relation to Postponed VAT Accounting (PVA).
The VAT Act 1994 section 1(4) provides that import VAT is treated as if it were a duty of customs.
Secondary law
Secondary legislation concerning import VAT is mainly contained in Regulations and Orders made under powers contained in the VAT Act 1994 and the Taxation (Cross Border Trade) Act 2018. For a list of key secondary legislation, proceed to use IMPS09500. Regulations 118 and 119 of the Value Added Tax Regulations 1995 specify the Customs legislation excepted from application to VAT under s16 (1) of the VAT Act 1994.
Extra-statutory concession (ESC)
HMRC has only limited authority to relieve tax correctly due in accordance with statutory law. Certain ESCs exist as an exception to this and for import VAT. IMPS03360 refers to an ESC for import VAT paid by customs’ agents.