Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Imports

From
HM Revenue & Customs
Updated
, see all updates

Value for import VAT: normal rules: potential duties

General

Where potential duty is taken on deposit, it is to be included in the value for VAT. In all cases where the importer is not registered for VAT (and where a registered importer has elected to pay VAT on deposit) the VAT is to be adjusted when the amount of duty is adjusted.

If the importer is a registered taxable person who has paid VAT outright, further VAT is due only on the amount of any further duty levied over and above the duty deposited. VAT is not to be repaid to registered importers who have paid tax outright, since the tax should have been recovered through the normal input tax system.

Where potential duty is covered by guarantee or other non-monetary security, it is excluded from the VAT value, but VAT is chargeable on any duty subsequently levied. Where both duty and VAT are relieved at importation but the goods are subsequently diverted, the value for VAT on the substitute entry is the duty-inclusive value.

Anti-dumping duty

Where definitive anti-dumping duty is payable at importation it is included in the value for VAT. Any duty that is subsequently reduced or cancelled will not require a VAT adjustment unless the importer is unregistered.

Provisional anti-dumping duty secured by guarantee or other non-cash security is excluded from the value for VAT, but VAT is chargeable on any duty subsequently levied as definitive.

Provisional anti-dumping duty secured by deposit is included in the value for VAT. Further VAT is due only on the amount of any further definitive duty levied over and above the duty deposited, VAT is not to be repaid to registered importers who have paid VAT outright.

Further information on anti-dumping duty is given in Anti-dumping and countervailing duties (ADCD) and Notice 376.