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HMRC internal manual


Value for import VAT: normal rules: incidental expenses

Incidental expenses include such items as customs clearance charges, quay rent, entry fees, demurrage and storage and handling costs. Generally, where supplies qualify for zero-rating because they are supplied in connection with an importation of goods (items 5, 6(b) or 11(a)), Group 8, Schedule 8 of The VAT Act 1994, the cost of those services should be included in the value for VAT at importation.

There will be instances when a UK supplier incorrectly charges VAT at source on such supplies (eg a haulier providing transport services to an importer). In such cases those costs may be excluded from the import VAT value. This will ensure that the same transaction is not taxed twice.