Import VAT and Duty Reliefs

Introduction

When you import goods into the UK from outside the country, you normally pay both customs duty and import VAT. However, HMRC provides several reliefs that allow you to bring in certain goods without paying these charges. These include reliefs for goods designed for disabled people, items donated to charities, inherited personal belongings, and commercial samples.

Relief for goods for disabled people

You can claim relief from customs duty and import VAT on goods specially designed or adapted to help disabled people, including those who are blind or partially sighted, carry out everyday activities.

Who can claim customs duty relief

You can bring goods into the UK free from customs duty if you are:

• An organisation approved by HMRC that is mainly concerned with the education of, or assistance to, disabled people or those who are blind or partially sighted
• A disabled, blind or partially sighted person importing goods for your personal use because of your disability
• A nominated carer (such as a parent, guardian, spouse, partner or family member) importing goods to be used by the disabled person only

Who can claim VAT relief

You can bring goods into the UK free from VAT if you are:

• A disabled person or nominated carer importing goods for personal use
• A charity that makes the goods available to disabled people for their personal use

What goods qualify

You can get relief on goods specially designed or adapted to provide educational, scientific or cultural help. For people who are blind or partially sighted, this includes:

• White canes and similar items for mobility assistance
• Teaching aids
• Equipment and digital media used to produce braille and talking books
• Electronic reading machines

For people with physical or learning disabilities, qualifying goods include:

• Teaching aids
• Table games and accessories

The goods must be for the sole use of the disabled person. Any adaptation must have been made before the goods are imported into the UK. You can also get relief on spare parts, components, tools and accessories specifically intended for goods that qualify for duty relief.

What you cannot claim relief on

You cannot get relief on:

• Standard generic wheelchairs and mobility light vehicles
• Motor vehicles or other methods of transport that have not been specifically adapted for the sole use of the disabled person
• Watches made from precious metals

Relief for goods donated to charities

Charities and certain other organisations can claim relief from customs duty and import VAT on goods donated to them from outside the UK.

Who can claim

To qualify, your organisation must be non-profit making and focused on the welfare of people in need. Eligible organisations include those:

• Registered by the Charities Commission or the Office of the Scottish Charities Regulator
• Hospitals
• State organisations dedicated to welfare
• Youth organisations
• Clubs, homes or hostels for the elderly
• Orphanages or children's homes
• Set up for relief of distress caused by particular disasters in the UK
• Focused on relief of distress generally (such as the British Red Cross Society or the Salvation Army)

You cannot claim relief on business or commercial activity, including retail sales and hire charges of imported goods.

What you can claim relief on

Basic necessities – You can get relief on food, medicines, clothing, blankets, orthopaedic equipment, crutches, and goods to help deal with disasters in the UK. These goods must be given free of charge and meet immediate needs. For VAT relief, you must receive the basic necessities free of charge.

Equipment and office materials – You can get relief on machines, tools, equipment, office materials, fixtures and fittings if you receive them free of charge from a person or organisation established outside the UK, without any commercial intent on the donor's part, and solely to help run your organisation and carry out charitable aims.

Goods for charity events – You can claim relief on goods you use or sell for fundraising at occasional charity events for the benefit of needy people, provided you receive them free of charge without commercial intent on the donor's part.

What you cannot claim relief on

You cannot claim relief on:

• Alcoholic products (including alcohol-based perfume)
• Tobacco and tobacco products
• Coffee and tea
• Motor vehicles other than ambulances
• Items associated solely with worship such as statues and pulpits
• Goods and equipment used for rebuilding disaster areas

How to claim

Goods imported in baggage – Declare them at the Customs Red Channel or Red Point when you arrive. Carry a letter from a responsible official of your charitable organisation stating that the organisation will meet the conditions of relief, describing the goods, stating how they will be used, and whether the goods are donated or purchased. Where the value exceeds £873, you must complete a formal declaration.

Goods imported by freight – Use Customs Procedure Code 40 00 C20 for goods imported from outside the UK, or 49 00 C20 for goods from the Channel Islands.

Goods imported by post – Ask the sender to write 'Charity items – relief claimed' clearly on the package and its accompanying import declaration.

Record keeping

You must keep all records for a minimum of 4 years, including any National Imports Relief Unit acknowledgement letters, receipts, bills, invoices, and insurance documents. If you dispose of or transfer your goods to another entity, you must tell the National Imports Reliefs Unit. If you fail to do so, or use the goods for any purpose other than that for which they were imported, you may have to pay duty and VAT.

Relief for inherited goods

You can claim relief from customs duty and import VAT on personal goods you inherit from a deceased person.

Who can claim

You can claim relief if you inherit goods from a deceased person and are:

• A UK resident
• A non-profit making company established in the UK

In nearly all cases, you cannot claim relief before the death of the current owner, even if you know the goods are left to you in their will.

What you can claim relief on

You can get relief for any personal goods you inherit as part of the deceased's estate, including:

• Jewellery and stamp collections
• Bicycles and private motor vehicles
• Caravans and trailers
• Pleasure craft and private aircraft
• Household furnishings
• Family pets and saddle animals
• Portable items (such as a doctor's bag, musicians' instruments, photographers' cameras and equipment) used by the deceased in their trade or profession

What you cannot claim relief on

You cannot claim relief for:

• Alcoholic drinks, tobacco and tobacco products
• Stocks of raw materials and finished or semi-finished products
• Tools of trade other than portable items
• Commercial vehicles
• Livestock and stocks of agricultural products beyond what is required to meet a family's normal needs
• Goods bought from the executor of the estate
• Goods bought or received as a gift from the person who legally inherited them

Proof required

When importing goods, you must provide:

• A copy of the will, or legal documents if the deceased died intestate, certified by the executor of the estate or by a person responsible for winding up the deceased's estate
• A declaration on form C1421

If documents are in a foreign language, a certified translation will help.

How to claim

Goods imported in baggage – Declare them at the Customs Red Channel or Red Point and produce evidence that the conditions of relief are met.

Goods imported as freight – Complete an import declaration on the Customs Declaration Service. Use Additional Procedure Code C04 for personal property inherited by an individual, or C44 for personal property inherited by legal persons engaged in non-profit making activity. If you're eligible to claim VAT relief, also declare code F45.

Goods imported by post – Ask the sender to write 'Inherited goods: relief claimed' clearly on the package and its accompanying customs declaration.

Relief for commercial samples

You can import commercial samples without paying customs duty and import VAT, provided they are properly prepared before import. Note that excise duty relief is not available for commercial samples.

Who can get relief

You can get relief if you're either a:

• Commercial entity within the UK
• Government agency or department, public institution or public establishment, recognised and approved by HMRC

The goods must be:

• Used as commercial samples showing the characteristics of the goods they represent
• Prepared and presented in an acceptable way before importation
• Imported solely with the intention of obtaining future orders for the type of goods they represent

How to prepare commercial samples

You and your supplier must identify your goods as commercial samples before importing them. Methods include:

Method A – Tearing, altering, perforating, slashing or defacing the items.

Method B – Labelling your goods with the term 'commercial sample' using a permanent indelible pen.

Method C – Limiting the amount of items within the consignment and, for items like garments and footwear, limiting the range of available sizes or dimensions.

Method D – Presenting the goods in a way that restricts their handling and limits their use to that of proper commercial samples.

HMRC expects you to ensure the goods meet either or both criteria A and B, depending on the type of goods. HMRC may also ask you to use one, some or all of the other methods depending on the commodity code. Only if this pre-importation preparation is done correctly can the goods be accepted as proper commercial samples and relief allowed.

What you cannot claim relief on

You cannot claim relief on:

• Small amounts of goods suspected of being deliberately mis-described as commercial samples
• Goods imported without the intention of obtaining further orders
• Goods that are not properly identified as commercial samples
• Undeclared imported items or materials that can be later made into samples
• Goods that can also be used for more than just commercial samples
• Goods using the Low Value Bulking Import procedures
• 'Give-away' goods intended to promote trade

How to claim

Goods imported in baggage – Declare them to HMRC at the time of arrival and provide sufficient evidence showing that all relief conditions are met.

Goods imported as freight – Complete an import declaration on the Customs Declaration Service. Use Additional Procedure Code C30. If you're eligible to claim VAT relief, also declare code F45.

Goods imported by post – Ask the sender to write clearly on the package and its accompanying customs declaration: 'Commercial samples of negligible value - relief claimed.'

Disposing of your goods

You can re-export the goods outside the UK, destroy them, or retain them (only with the prior agreement of the National Imports Reliefs Unit). You cannot sell the goods, make them into another product, transfer or give away the goods, or donate them to charity.

Late claims

You must submit any late claim within 3 months of the date of original import and provide evidence that HMRC can use to agree the goods were properly prepared prior to import as commercial samples.

Sources

• Pay no Customs Duty or VAT on goods for disabled people
• Pay no import duties and VAT on goods for charity
• Pay no import duties or VAT on inherited goods
• Pay no import duty and VAT on importing commercial samples

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.