By
August 11, 2026
Can a UK Company Reclaim Import VAT?
Yes. A VAT-registered UK company can generally reclaim eligible import VAT when it imports goods for use in its taxable business activities, provided the relevant conditions are met and the company has the correct evidence.
For businesses importing stock, equipment or other goods from overseas, this is an important distinction:
Import VAT may be recoverable.
Customs duty is generally not recoverable as VAT.
A UK company may account for import VAT using Postponed VAT Accounting (PVA) or, depending on the import arrangements, pay import VAT and reclaim it later using the appropriate evidence.
This guide explains when a UK company can reclaim import VAT, what documents are required and how Postponed VAT Accounting works.
Import VAT is VAT that can arise when goods are imported into the UK.
For example:
Overseas supplier
↓
Goods shipped to UK
↓
Goods imported
↓
Import VAT arises
For a VAT-registered company entitled to recover the VAT, this does not necessarily mean import VAT becomes a permanent business cost.
The company may be able to recover it through its VAT Return.
Generally, yes, where the company:
Import VAT cannot simply be reclaimed because the company paid an overseas supplier.
The import and supporting documentation must be handled correctly.
Suppose a VAT-registered UK ecommerce company imports £20,000 of stock.
For illustration, assume the relevant import VAT is:
Import VAT: £4,000
If the full £4,000 is eligible for recovery, the company may potentially reclaim:
£4,000
through its VAT Return.
The VAT may therefore not represent a permanent £4,000 cost to the business.
Customs duty, freight and other charges need to be considered separately.
Postponed VAT Accounting, commonly called PVA, allows VAT-registered businesses to account for import VAT on their VAT Return.
Without PVA, the process might involve:
Import goods
↓
Pay import VAT
↓
Wait
↓
Reclaim eligible VAT
With PVA:
Import goods
↓
Account for import VAT on VAT Return
↓
Reclaim eligible import VAT on the same VAT Return
This can provide an important cash-flow advantage.
Suppose your company imports stock and £10,000 of import VAT needs to be accounted for.
If the company is entitled to full VAT recovery, it may account for:
Import VAT due: £10,000
and:
Recoverable import VAT: £10,000
on the same VAT Return.
The net effect can therefore be:
£0
subject to the company's overall VAT position.
The company has still accounted for import VAT — PVA simply changes how it is handled.
No.
PVA does not make the import exempt from VAT.
It allows the business to postpone accounting for the VAT until its VAT Return rather than necessarily paying the amount upfront at importation.
The distinction is:
No PVA → import VAT may be paid before being reclaimed
PVA → import VAT can be accounted for and, where eligible, recovered through the VAT Return
This can significantly improve cash flow for regular importers.
Businesses using PVA can obtain a postponed import VAT statement.
This provides details of the import VAT that should be accounted for through the company's VAT Return.
These statements are important VAT records.
A business using PVA should regularly download and retain its statements rather than assuming its accounting software or freight forwarder has all the necessary information.
Where import VAT is paid rather than accounted for using PVA, HMRC can provide import VAT evidence commonly known as a C79 certificate.
A C79 can provide the evidence needed to support an eligible import VAT recovery claim.
The general distinction is:
PVA → postponed import VAT statement
Import VAT paid → C79 evidence may be relevant
Businesses should retain the appropriate documentation with their VAT records.
An overseas supplier's commercial invoice does not, by itself, normally establish the amount of UK import VAT that your company is entitled to recover.
This is because the supplier has not necessarily charged UK VAT.
Instead, UK import VAT arises through the customs/import process.
Your company should therefore retain the appropriate import VAT evidence.
This might include:
Postponed import VAT statement
or
C79 certificate
depending on how the import was processed.
Generally, yes, to recover import VAT through a UK VAT Return.
If your company is not VAT registered, import VAT will normally form part of the cost of importing the goods.
For example:
Goods: £10,000
Import VAT: £2,000
If the company cannot recover the VAT:
Effective cost before other charges: £12,000
This can have a major effect on margins for businesses importing stock.
Potentially.
UK VAT rules allow businesses in certain circumstances to recover VAT incurred before registration.
The rules and time limits depend on whether the expenditure relates to:
For imported goods purchased before VAT registration, recovery may potentially be available where the applicable pre-registration conditions are met and the company retains the necessary evidence.
Businesses registering for VAT should therefore review previous import transactions rather than assuming all pre-registration VAT is lost.
This is extremely important.
The company seeking to recover import VAT should ensure that the customs declaration and import arrangements correctly identify the relevant importer.
For example:
ABC Ltd buys stock
↓
ABC Ltd imports stock
↓
ABC Ltd's appropriate details used
↓
ABC Ltd obtains import VAT evidence
↓
ABC Ltd potentially reclaims eligible VAT
Problems can arise when the supplier, freight forwarder or another company is incorrectly shown as importer.
The party paying for the goods is not automatically entitled to reclaim import VAT.
VAT recovery depends on the legal and commercial import arrangements.
If your company wants to recover import VAT, confirm before shipment:
This is particularly important when using couriers and customs agents.
Businesses importing goods into Great Britain generally need an appropriate GB EORI number.
EORI stands for:
Economic Operators Registration and Identification
It is used for customs purposes.
An EORI number is different from a VAT registration number, although both can be relevant when importing goods.
Incorrect EORI or VAT details can cause delays and problems with import VAT records.
Generally, eligible import VAT on stock imported for taxable business activities may be recoverable by a VAT-registered company.
For example, an ecommerce company imports:
£50,000 of inventory
If import VAT is properly accounted for and the company is entitled to full VAT recovery, the qualifying import VAT may potentially be reclaimed.
This can be particularly important for:
Potentially, yes.
A VAT-registered company may potentially recover qualifying import VAT on business equipment such as:
The normal VAT recovery conditions still apply.
Special restrictions can apply to certain expenditure.
The VAT recovery rules for cars are significantly more restrictive.
A company should not assume that import VAT on a vehicle is automatically recoverable simply because the vehicle was purchased by the business.
VAT recovery can depend on:
Vehicle purchases should be checked separately.
VAT recovery can be restricted where goods are used for non-business or private purposes.
For example, if an imported asset is used partly for:
Business
and partly for:
Private purposes
the company may not necessarily be able to recover all of the import VAT.
The correct VAT treatment depends on the circumstances.
This can also restrict VAT recovery.
A business making exempt supplies may be subject to the partial exemption rules.
For example, a company may have:
Taxable activities
Exempt activities
In that situation, not all input VAT — including import VAT — may necessarily be recoverable.
Businesses making exempt and taxable supplies should calculate VAT recovery carefully.
No — not in the same way as VAT.
Customs duty is separate from import VAT.
For example:
Customs duty: £3,000
Import VAT: £6,000
If the company is fully entitled to recover the import VAT:
£6,000 → potentially recoverable
while:
£3,000 customs duty → generally remains a business cost
This distinction is essential when calculating the true cost of imported goods.
Customs duty can form part of the value used to calculate import VAT.
For example, a simplified calculation could involve:
Customs value
Customs duty
Certain additional costs
↓
VAT value
↓
Import VAT calculated
The actual calculation can include freight, insurance and other relevant costs.
Suppose a UK company imports goods with a customs value of:
£25,000
For illustration, assume:
Customs duty: £1,250
and the relevant VAT value becomes:
£26,250
If VAT applies at 20%:
Import VAT: £5,250
The company might therefore incur:
Customs duty: £1,250
Import VAT: £5,250
If the company qualifies for full VAT recovery:
Potential import VAT recovery: £5,250
The £1,250 customs duty would generally remain a cost.
This is a simplified example; actual customs valuations can include additional amounts.
Potentially, yes.
If a VAT-registered UK company imports goods from China for qualifying taxable business purposes and has the appropriate evidence, eligible import VAT may generally be recovered.
For example:
China
↓
Goods imported into UK
↓
UK import VAT accounted for
↓
Eligible UK company reclaims import VAT
Customs duty may also apply depending on the goods and their origin.
The same general principles apply.
If goods are imported:
USA → UK
import VAT can arise.
A VAT-registered UK company may potentially recover qualifying import VAT where the normal conditions are satisfied.
Goods entering Great Britain from EU countries are generally treated as imports.
Therefore, import VAT may arise.
A VAT-registered company may potentially recover eligible import VAT or use PVA.
Different VAT arrangements can apply to certain goods movements involving Northern Ireland and the EU.
This is different from UK import VAT.
For example, suppose a supplier incorrectly charges:
French VAT
on goods that are subsequently exported to your UK company.
You generally cannot simply reclaim that French VAT as UK input VAT on your UK VAT Return.
Foreign VAT and UK import VAT are separate.
You may need to contact the supplier or consider the applicable foreign VAT recovery process.
Couriers sometimes pay customs charges on behalf of the importer and then invoice the customer.
Do not automatically assume the courier's charge is recoverable VAT.
Check:
Who was importer?
Whose VAT number was used?
How was import VAT accounted for?
Do you have the correct evidence?
A courier invoice alone does not necessarily establish your entitlement to reclaim import VAT.
The same principle applies.
A freight forwarder can manage the customs declaration, but your company should still understand how the import was entered.
Before shipment, confirm:
Use our company as importer
Use correct EORI
Use correct VAT registration
Use PVA where intended
Clear instructions can prevent VAT recovery problems later.
It depends on whether your company actually imports the goods into the UK.
For example:
Chinese supplier → US customer
The goods never enter the UK.
There is therefore no UK import VAT for your company to reclaim.
But:
Chinese supplier → UK warehouse
is a UK import and UK import VAT may arise.
Always follow the physical movement of the goods.
The position can become more complicated where imported goods are subsequently returned or re-exported.
Customs reliefs, repayment procedures or VAT adjustments may potentially apply depending on the circumstances.
Keep detailed records of:
Businesses should reconcile postponed import VAT statements against their customs and purchase records.
If amounts appear missing or incorrect, investigate rather than simply estimating the VAT.
Possible causes can include:
Your customs agent may need to correct the underlying declaration.
VAT-registered businesses should retain appropriate VAT records for the period required under HMRC's record-keeping rules.
Import records can be particularly important because HMRC may need to verify:
Keep import documentation organised with the related purchase and accounting records.
Useful records include:
These documents create an audit trail supporting the VAT recovery claim.
UK companies should avoid:
Before reclaiming import VAT, ask:
Is the company VAT registered?
↓
Was the company the correct importer?
↓
Was the correct EORI used?
↓
Was the correct VAT number used?
↓
Were the goods imported for business purposes?
↓
Do the company's activities permit VAT recovery?
↓
Was PVA used?
↓
Do we have the postponed VAT statement or appropriate C79 evidence?
↓
Is any VAT recovery restricted?
↓
Does the amount match our accounting records?
Only reclaim VAT once you are satisfied that the company is entitled to it.
Yes. A VAT-registered UK company can generally recover eligible import VAT on goods imported for taxable business activities, provided the relevant conditions are met and appropriate evidence is retained.
Generally, VAT registration is required to reclaim import VAT through a VAT Return, although pre-registration VAT rules can sometimes allow recovery after registration.
PVA allows VAT-registered businesses to account for import VAT through their VAT Return rather than necessarily paying it upfront.
Depending on how the import VAT was accounted for, evidence can include a postponed import VAT statement or C79 documentation.
Customs duty is not reclaimed as VAT. It generally remains a cost of importing the goods.
Potentially, yes, if your VAT-registered company is entitled to recovery and the import documentation is correct.
Potentially, yes, for qualifying imports into Great Britain.
Foreign VAT generally cannot simply be reclaimed on a UK VAT Return. It should be dealt with separately.
Potentially, but the company still needs to establish its entitlement and have the appropriate import VAT evidence.
It can be. PVA can avoid the need for a business to fund eligible import VAT upfront and then wait to reclaim it.
So, can a UK company reclaim import VAT?
For many VAT-registered businesses, the answer is yes.
A typical import might work like this:
Overseas supplier
↓
Goods enter UK
↓
UK company is importer
↓
Import VAT arises
↓
PVA used or import VAT paid
↓
Correct evidence obtained
↓
Eligible import VAT reclaimed
The most important distinction is:
Import VAT → potentially recoverable
while:
Customs duty → generally remains a business cost
For regular importers, Postponed VAT Accounting can also provide an important cash-flow advantage.
However, VAT recovery should never be based simply on the fact that the company paid for the goods.
Check:
Importer + EORI + VAT number + business purpose + PVA/C79 evidence + VAT recovery entitlement
before making the claim.
This article provides general information only and does not constitute tax, customs, accounting, financial or legal advice. VAT and customs rules can change and the correct treatment depends on the particular import and business circumstances. Check current HMRC guidance or obtain professional advice where necessary.
