UK import VAT calculator for goods from China
Import VAT on goods from China is charged on the customs value plus the duty, at the same rate as a UK sale of the same goods: 20% for most goods. A VAT-registered business can use postponed VAT accounting and pay nothing at the border; a buyer who is not VAT-registered pays it and keeps the cost.
How import VAT is worked out
Import VAT = VAT rate × (customs value + incidental costs to the first UK destination not already in it + customs duty)
- The rate is the one that would apply if the goods were sold in the UK. The standard rate is 20%; some goods are reduced rate (5%) or zero rate (0%), so check the rate for your goods on GOV.UK.
- The value for VAT starts from the customs value, even when no duty is payable. Commission, packing, transport and insurance up to the goods' first destination in the UK are added where they are not already in the customs value, then customs duty, then any excise duty or other import charges except the VAT itself.
- Duty is charged on the customs value first, which is why the VAT is worked out on a figure that already includes the duty.
Worked example
The example's own inputs, not a price for any product: goods with a customs value of £10,000, a 4% duty rate, no extra incidental costs, standard-rate VAT, imported by a VAT-registered business.
| Customs value (£) | £10,000.00 |
|---|---|
| Customs duty | £400.00 |
| Value for VAT | £10,400.00 |
| Import VAT | £2,080.00 |
| Paid at the border without PVA | £2,080.00 |
| Paid at the border with PVA | £0.00 |
With postponed VAT accounting the same £2,080 is declared in box 1 and reclaimed in box 4 of the VAT Return for the period of import, so nothing is paid at the border. Without it, the £2,080 is paid on import and reclaimed later. A buyer who is not VAT-registered pays the £2,080 and cannot reclaim it.
Postponed VAT accounting (PVA)
Who can use it: any business registered for VAT in the UK, for goods imported into Great Britain from anywhere outside the UK, where the goods are for use in the business and the business has the right to dispose of them. No approval is needed. The VAT registration number goes on the import declaration, and a forwarder or customs agent needs your instruction in writing before they can select PVA for you.
How it works: each month the Customs Declaration Service produces a postponed import VAT statement. On the VAT Return for the period in which the goods were imported, the import VAT goes in box 1 (VAT due) and the same amount in box 4 (VAT reclaimed), subject to the normal input tax rules; the value of the goods, excluding VAT, goes in box 7.
The cash-flow effect: without PVA, the import VAT is paid when the goods are cleared, or through a duty deferment account, and comes back only when the VAT Return is processed. With PVA the declaration and the reclaim sit on the same return, so for a fully taxable business the net payment is nil and no money is tied up between import and reclaim.
If you are not VAT-registered
A UK trader that is not registered for VAT still pays the import VAT, at the border or to the carrier or agent who cleared the goods, and cannot reclaim it. For that buyer the VAT is part of the landed cost of every shipment, and PVA is not available.
Small orders from China, with one UK landed price
Sources
Checked on 27 September 2026
- GOV.UK — Check when you can account for import VAT on your VAT Return (postponed VAT accounting)
- GOV.UK — Completing your VAT Return to account for import VAT
- HMRC — Imports and VAT (VAT Notice 702)
- GOV.UK — Working out the VAT value using the customs value of the imported goods
- GOV.UK — Paying VAT on imports from outside the UK to Great Britain
- GOV.UK — VAT rates
A guide to the rules, not tax advice. Customs value, commodity code, VAT liability and input tax recovery depend on your goods and your business. Consignments of £135 or less follow different VAT rules.
Questions about this tool
How is UK import VAT calculated on goods from China?
On the customs value plus customs duty, plus any incidental costs to the first UK destination not already in the customs value, at the rate that applies to the same goods sold in the UK. For most goods that is 20%. On a £10,000 customs value with 4% duty, the VAT is 20% of £10,400: £2,080.
What is postponed VAT accounting?
A way for a UK VAT-registered business to account for import VAT on its VAT Return instead of paying it at the border. The VAT is declared in box 1 and reclaimed in box 4 of the same return, so nothing is paid up front. No approval is needed; the VAT number goes on the import declaration.
Can I use postponed VAT accounting if I am not VAT-registered?
No. The business must be registered for VAT in the UK. A buyer who is not registered pays the import VAT on import and cannot reclaim it.
Is import VAT charged on the duty as well?
Yes. Customs duty is added to the customs value before the VAT is worked out, so the VAT is charged on the duty too.
Are some goods charged less than 20% import VAT?
Yes. Import VAT is charged at the same rate as a UK supply of the goods, so reduced-rate (5%) and zero-rated (0%) goods keep those rates on import. Check the rate for your goods on GOV.UK.
Monthly email
What changed for UK buyers from China, and when to act
One email at the start of each month. Every figure has an official source.
Get one UK landed price, with duty and import VAT worked out
For UK delivery, send a link or specification for an off-the-shelf product and we can return a free landed-price comparison within 72 hours, whether or not you buy it today. If you buy it already, tell us your current price. Custom products take about three weeks to quote; overseas delivery and standalone audits are scoped separately.
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