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UK Brexit goods valuation for customs and VAT

Alternatives for determining the customs value for post-Brexit import declarations

Following the UK’s departure from the EU Customs Union and VAT regime after 31 December 2020, importers will have to declare the valuation of any goods moving between the UK and EU. There are special rules governing the valuation of goods for VAT and customs purposes. It is important to get these right since they are used as the basis of calculating import VAT and any customs duties or tariffs. Since 1 January 2022, new Brexit customs rules came into place.

Import VAT goods value

Import VAT is calculated on the customs valuation (see below) plus incidental costs of import. This can include the transport costs between the port of clearance and the delivery address. Import VAT also includes the customs tariffs. You can avoid cash payments of UK import VAT via the new Postponed Accounting deferred VAT.

Customs value for import tariffs

A number of methods may be used to identifying the value of imports for customs purposes. The most common example is the transaction values, which includes:

  • Invoice purchase price (evidence required)
  • Delivery costs to border
  • Calculating customs duties / tariffs

Once the value is determined; the tariff rate may be selected. This is based on:

  • type of goods;
  • ship from country; and
  • country of origin.

The UK has set a proposed Global Tariff which will apply to imports from all countries around the world.

You can check the right VAT calculations on individual or batch transactions with our Advisor and Auditor services.

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