Imports

Foreword

This notice cancels and replaces Notice 702 (May 2006). Details of any changes to the previous version can be found in paragraph 1.2 of this notice.

Further help and advice

If you need general advice or more copies of HM Revenue & Customs notices, please ring the National Advice Service on 0845 010 9000. You can call between 8.00 am and 8.00 pm, Monday to Friday.

If you have hearing difficulties, please ring the Textphone service on 0845 000 0200.

If you would like to speak to someone in Welsh, please ring 0845 010 0300, between 8.00 am and 6.00 pm, Monday to Friday.

All calls are charged at the local rate within the UK. Charges may differ for mobile phones.

Other notices on this or related subjects

700 The VAT Guide

702/9 Imports Customs procedures with economic impact, End Use Relief and Free Zones

718 Margin Schemes for second-hand-goods, works of art, antiques and collector's items

725 VAT: The single Market

1. Introduction

1.1 What is this notice about?

It explains how imported goods are treated for VAT purposes.

The VAT treatment of goods entering the UK from other parts of the EC territory (see section 9) is set out in Notice 725 VAT: The Single Market and Notice 728 VAT: Motor vehicles, boats, aircraft: intra-EC movements by private persons.

The VAT treatment of goods imported into Customs warehouses is set out in Notice 702/9 VAT: Imports Customs procedures with economic impact, End Use Relief and Free Zones.

The VAT treatment of goods imported into Fiscal warehouses is set out in Notice 702/8 VAT: Fiscal Warehousing.

This notice (and others mentioned) are available both on paper and our Internet website at www.hmrc.gov.uk.

1.2 What’s changed?

This notice has been revised to remove references to Customs Procedures with Economic Impact/End-use relief and Free Zones, which have been removed to Notice 702/9 VAT: Imports Customs procedures with economic impact, End Use Relief and Free Zones, to clarify the rules on the valuation of imported goods for VAT purposes, and to reflect the enlargement of the EU. Otherwise the technical content is unchanged from the Jan 2004 edition.

New paragraph 3.6 has been added to explain changes to the VAT treatment of auctioneer's commissions on certain works of art, collector's pieces and antiques due to the implementation of a European Court of Justice (ECJ) judgement.

You can access details of any changes to this notice since October 2006 either on our website at www.hmrc.gov.uk or by telephoning our National Advice Service on 0845 010 9000.

This notice and others mentioned are available both on paper and our website.

1.3 Who should read this notice?

It will be of interest to anyone importing goods into the UK from outside the fiscal (VAT) territory of the European Community (EC). You can find out the extent of the fiscal territory in section 9.

1.4 What law covers this notice?

The EC law relating to Import VAT is contained in the EC Sixth VAT Directive (77/388/EEC) as amended by the EC Seventh Directive (94/5/EEC) and the Second VAT Simplification Directive.

The primary UK VAT law is contained in the VAT Act 1994. The effect of section 16 of the VAT Act 1994 is that most Revenue and Customs legislation applies to import VAT except where specifically disapplied through secondary legislation.

Secondary legislation concerning import VAT is mainly contained in regulations, notably the VAT Regulations 1995 (SI/1995/2518), and orders made under the powers contained in the VAT Act 1994. Regulations 118, 119, 120 and 121 of the VAT Regulations 1995 specify the EC and Revenue and Customs legislation disapplied.

This notice is not the law. It is our view of the law and nothing in this notice takes the place of the law.

1.5 What is import VAT?

Import VAT is the transaction tax levied on imported goods. Goods are treated as imported when;

• they arrive in the UK directly from outside the EC and are entered to free circulation in the UK or customs duty otherwise becomes chargeable on them, or
• they have been placed under one of the customs suspensive arrangements listed in Notice 702/9 in the EC and the goods are being removed to free circulation in the UK or customs duty otherwise becomes chargeable.

1.6 What is the territory of the EC?

Unless otherwise qualified, the term "EC" is used in this notice to refer to the VAT (fiscal) territory of the EC, which is different from the customs territory of the EC. The countries and territories, which make up the VAT (fiscal) territory of the EC are listed in section 9.

1.7 How to treat transactions with the Isle of Man

Goods removed from the Isle of Man to the UK are not treated as an importation provided that;

• any VAT due has been accounted for in the Isle of Man; or
• if the goods were relieved of VAT in the Isle of Man, the conditions of that relief have not been broken.

1.8 Goods imported from the special territories including the Channel Islands

Section 9 lists the territories inside/outside the EC for customs duty and VAT purposes.

The Channel Islands and special territories listed in Section 9 are part of the EC for customs purposes but are not part of the VAT territory.

If you import goods from the Channel Islands or special territories you will be liable for import VAT in the same way as you would for those imports detailed in paragraph 1.5.

1.9 How to treat transactions with countries which join the EC

Goods received from countries joining the EC may be subject to accessionary rates of EC customs duties. Unlike goods from other EC member States, therefore, some frontier formalities may remain for duty purposes. However, for VAT purposes, such goods will not be subject to the import VAT treatment described in this notice. Instead, for registered traders, the arrangements set out in Notice 725: The Single Market will apply. You will not have to pay Import VAT at the time the goods are entered for customs purposes.

1.10 How to treat services received from outside the EC

If you receive any of the services listed in Notice 700: The VAT Guide, Appendix D you must account for tax on them as if you had supplied them to a UK customer. You will find more information in Notice 741: VAT, Place of supply of services.

1.11 Right of appeal

If you disagree with any decision made by Revenue & Customs you can ask for it to be reconsidered. You should do so if you can provide further relevant information, or if there are facts which you think may not have been fully taken into account. If you are still not satisfied with the decision, you can appeal to The VAT and Duties Tribunals. You will find more about the appeal procedure in:

• Notice 700: The VAT Guide;
• Notice 990: Excise and Customs Appeals; and
• in greater detail in the leaflet Appeals and Applications to the Tribunals, issued by the President of the VAT Tribunals.

You can get copies of the leaflet and the forms for making an appeal from any VAT Tribunal Centre or our National Advice Service (0845 010 9000).

Further information regarding appeals is available in Volume 1, Part 16 of the HM Revenue & Customs Tariff.

There are penalties for failing to comply with Revenue & Customs requirements. Serious breaches can lead to the imported goods being seized, and criminal prosecution.

In your own interests, if you are unsure about something, ask for advice.

2. Importation - general

2.1 VAT rate at importation

VAT is charged on the importation of goods at the same rate as if the goods had been supplied in the UK.

2.2 How import VAT is charged and collected

Goods are declared to Customs using the SAD (Form C88) that in most cases is presented in an electronic format. Import VAT is dealt with in the same way as a customs duty. You can pay it outright at importation, or under the duty deferment arrangements explained in Notice 101: Deferring duty, VAT and other charges. Notice 101 also covers Simplified Import VAT Accounting (SIVA). This is a scheme that reduces the level of financial security required to guarantee the payment of import VAT through the duty deferment system. Traders must be authorised to operate SIVA.

If you wish to apply for, or have any queries about deferment, you should contact:

Finance Accounting Services
Central Deferment Office
10th Floor South East
Alexander House
21 Victoria Avenue
Southend-on-Sea
Essex SS99 1AA

Telephone: 01702 367425, 367431, 367450 or 367429

Note: You cannot use the Cash accounting* scheme for imported goods.

* The Cash accounting scheme should not be confused with the Flexible Accounting Scheme (FAS) that may be used for imported goods.

2.3 Who can reclaim import VAT as input tax?

Subject to the normal rules, you can claim as input tax any import VAT you pay on goods, provided those goods are imported for the purpose of your business. Your claim must normally be made on the VAT return for the accounting period during which the importation took place.

The normal evidence of payment of import VAT is the import VAT certificate (Form C79), which is issued monthly. Section 8 gives more information about the C79, as well as the acceptable evidence for those types of importation that at present do not appear on a C79. It also explains what to do if you lose a certificate or have any queries about items missing from certificates.

If you are partly exempt and are unsure about the amount of tax that you may reclaim, you should consult our National Advice Service on 0845 010 9000.

2.4 Can a shipping or forwarding agent reclaim input tax?

If you act as a shipping or forwarding agent for an importer and pay or defer VAT on their behalf, it is a commercial arrangement between you and your principal. You cannot claim the VAT as input tax because the goods are not imported for the purpose of your business. Although Revenue & Customs usually deal with agents in relation to the importation and clearance of goods, it is the importer’s responsibility to ensure that goods are properly entered, and that any Import VAT and other charges due are paid. Only the importer has the legal right to reclaim the VAT paid on imported goods as input tax, subject to the normal conditions being met.

2.5 What can I do as a shipping or forwarding agent if an importer does not pay me the import VAT?

If an importer fails to pay you import VAT you paid on their behalf, your only recourse is to the importer, except where;

• the importer has gone into liquidation; or
• an administrator or administrative receiver has been appointed, who certifies that in their opinion, ordinary unsecured creditors will receive nothing in the liquidation.

In such cases you may be able to recover amounts paid as tax from Revenue & Customs. All of the following conditions must be met.

• The interval between the date of the import entry for the goods and the date the importer became insolvent is no more than six months.
• You entered the goods in accordance with instructions from the importer.
• During their stay in the UK the goods were under your control and were not used; and
• The goods have been re-exported in the same state as they were imported.

To claim repayment you should write to the National Duty Repayment Centre at Dover, enclosing:

• Evidence that the import VAT has been paid to Revenue and Customs.
• A certificate from the person in charge, for example, the liquidator, that the VAT has not been, and will not be, reclaimed as input tax.
• Confirmation from the person in charge that the importer became formally insolvent within six months of the date the entry was lodged with Revenue and Customs.
• A declaration that you will not recover the relevant VAT in whole or in part from the insolvency; and
• evidence to satisfy Revenue & Customs that you have acted in accordance with the importer’s instructions.

National Repayments Centre
Priory Court
St John’s Road
Dover
CT17 9SH

Telephone: 01304 664 523

If you need any further advice you should contact the National Advice Service on 0845 010 9000.

2.6 Repayment of monies overpaid as import VAT General

Import VAT can only be reclaimed as input tax by a VAT registered importer. However, amounts overpaid as import VAT (for example, because of misclassification of the goods) are generally repayable to the person who paid the amount to Revenue & Customs, subject to certain conditions.

Repayments to VAT registered traders

If you have overpaid import VAT you can apply for the payment to be adjusted (see section 8). You or your agent must complete Form C285 and you must support the request with the written declaration:

"I am expecting direct repayment/partial repayment to be made, and no claim to input tax deduction has been, or will be made by me on the basis of the document as originally issued."

The written declaration must be signed by the sole proprietor, a partner or a responsible officer of the company. If the request is accepted, Customs will make the repayment.

Customs do not normally make direct repayments of import VAT. However, if you do make a request for direct repayment, it will be processed through the duty adjustment system. VAT repayments are not given special priority, and you should carefully consider whether the money could be recovered more quickly through the normal input tax deduction system. If you use deferred payment arrangements a direct repayment cannot be made until the VAT has been paid by direct debit. However, you can apply for an incorrect deferred VAT transaction to be adjusted before payment is made by direct debit, if there is sufficient time within the deferment accounting period to allow for this. You should contact the EPU where the transaction was entered, who can advise you further on the timescales and processes for adjustments to be made to your deferment account.

You may also make a claim for immediate repayment if you have been wrongly charged VAT because an incorrect Deferment Approval Number (DAN) has been quoted or keyed. You should submit your claim to the National Repayment Centre (see paragraph 2.5 for address).

Repayments to agents

If an importer fails to pay you the import VAT that you paid on their behalf, your only recourse is to the importer, except in the circumstances set out in paragraph 2.5. However, if you have overpaid import VAT (for example, because goods have been misclassified), you may be able to reclaim the amount overpaid if you can provide evidence that you have not been, and will not be reimbursed by the importer.

If you need any further advice you should contact the National Repayment Centre.

2.7 Non-UK traders and their agents

Appointing an agent to import and supply goods

If you are a non-UK trader, not registered for UK VAT, and

• you import goods for onward supply in the UK; and
• you do not supply any other goods or services within the UK to a total value exceeding the current registration limits

you can arrange for an agent who is resident in the UK, and who is registered for VAT purposes, to import and supply goods on your behalf. Under this arrangement you can avoid the need to be registered for VAT. You must agree with the agent that they will issue proper tax invoices for the supplies of the goods.

If you adopt this arrangement your agent’s supply of services to you will be standard-rated, but you will not be able to deduct the VAT that you are charged because you are not registered for UK VAT.

UK agent’s responsibilities

If you act as an agent for a non-UK trader under the arrangement referred to above, you will be treated as importing and supplying the goods as the principal. You must make any necessary customs entries as importer, pay or defer the VAT and take delivery of the goods. You can reclaim the import VAT as input tax, subject to the normal rules, but you must treat the transactions as a supply by you and charge and account for VAT on the onward sale in the normal way.

You must also account for VAT on your services to the non-UK trader.

Registration of non-UK traders

If you do not wish to use the arrangements referred to above, but you make taxable supplies in the UK, you will normally have to register for VAT here, when the value of your supplies exceeds the UK VAT threshold. There is more information about the threshold and the liability to register for UK VAT in Notice 700/1: Should I be registered for VAT?

If you make taxable supplies in the UK but have no business establishment here you may choose one of three options. You may:

• appoint a tax representative to deal with your tax affairs;
• appoint an agent to deal with your tax affairs; or
• deal with your VAT obligations yourself.

You will find more information in Notice 700/4: Registration for VAT: Non-established taxable persons and Notice 725: VAT: The Single Market.

2.8 Goods not wholly owned by the importer

If you import goods that belong wholly or partly to another person, and the goods are to be used for your own or any other person’s private purposes, you cannot recover the import VAT paid as input tax. This situation will arise; for example, if a VAT registered marine repair trader imports a privately owned yacht for repair, where the yacht is to be used after repair for private purposes. If such treatment results in VAT being charged twice, you should apply to your local VAT office for a repayment. You should write giving full details of the goods and the reasons for your claim. You should enclose the VAT copy of the customs declaration or a copy of the import VAT certificate (Form C79) and a copy of any sales invoice for the goods.

2.9 Goods lost or destroyed

Where imported goods are lost or destroyed before they are released from official control you can apply to Revenue & Customs at the place where the import entry was presented for repayment or remission of the Import VAT paid or due, using Form C285 (see paragraph 2.6). Where imported goods are lost or destroyed after release from official control, you can deduct the VAT paid as input tax, subject to the normal rules, provided the goods were to be used for the purposes of your business. You need not account for output tax unless you supplied the goods to someone else before the loss or destruction occurred. You will find more about this in Notice 700: The VAT Guide.

2.10 Goods supplied before delivery of an import entry

If:

• you make a supply of imported goods between the time of their arrival in the UK and the time when an import entry is delivered to Revenue & Customs; and
• the new owner of the goods is required to make the import entry;

then you should zero-rate the supply.

2.11 What to do when the precise amount of duty is not known

When the precise amount of Import Duty due cannot be assessed at the time the declaration is presented, release of the goods can usually be allowed on payment of a deposit or the provision of security to cover the amount of duty considered to be in dispute (see Notice 252: Valuation of imported goods for customs purposes, VAT and trade statistics).

If you are VAT registered you may pay the import VAT outright, based on the value for VAT that includes the highest potential duty amount. An import VAT certificate (Form C79) will be issued and you can claim repayment on your VAT return under the normal rules. Alternatively, you may provide security for the disputed amount of VAT. However, you should be aware that this might not be to your advantage. If you choose to secure the disputed element of VAT, a C79 will not be issued until after the duty amount has been adjusted. The adjustment may not take place until some weeks after the deposit has been made, depending on how long it takes you or your agent to produce the necessary evidence. Input tax recovery may be delayed accordingly.

If you are not VAT registered you must secure the amount of VAT in dispute.

3. Valuation of imported goods for VAT purposes

3.1 Value for import VAT

General

The value for VAT of imported goods is their customs value, determined according to the customs rules described in Notice 252: Valuation of imported goods for customs purposes, VAT and trade statistics, plus, if not already included in the price:

• all incidental expenses such as commission, packing, transport and insurance costs incurred up to the goods’ first destination in the UK; plus
• all such incidental expenses where they result from transport to a further place of destination in the EC if that place is known at the time of importation; plus
• any customs duty or levy payable on importation into the UK; plus
• any excise duty or other charges payable on importation into the UK (except the VAT itself).

Note: Some goods are entitled to a reduced valuation at import. See paragraph 3.4 for details.

Incidental expenses

In addition to the examples given above (such as transport), the term "incidental expenses" also covers such items as customs clearance charges, quay rent, entry fees, demurrage, handling, loading and storage costs. Generally, where supplies of services qualify for zero-rating because they are supplied in connection with an importation of goods, the cost of those services should be included in the value for import VAT.

Certain costs, for example, royalties and licence fees, should not be included in the value for import VAT as they are taxable under the reverse charge/international service arrangements (see Notice 741: Place of supply of services for details).

First destination

"First destination" is the place mentioned on the consignment note or any other commercial document relating to the imported goods. In the absence of such documentation, it means the place of the first transfer of the goods in the UK.

Further destination

If a further destination in the UK or another EC member State is known at the time the goods are imported, costs relating to the transport of the goods to that place must be included in the import VAT value.

Calculation of the amount for incidental expenses.

The following three methods may be used to calculate the ‘incidental expenses’ element of the import VAT value. The first method requires actual costs to be declared, whilst methods 2 & 3 provide ways of estimating the incidental expenses. Use of the three methods is non-hierarchical and individual importers or agents may use whichever method best suits their particular circumstances.

METHOD 1

This method requires the actual costs to be declared at the time the goods are imported. The time of importation is the time when the customs debt is incurred or would have been incurred if the goods were subject to duty. In cases where the costs are later found to be incorrect (eg if additional storage costs are incurred) the amount(s) paid will need to be adjusted after importation.

METHOD 2

The following nationally agreed rates may be used to estimate the incidental expenses to be included in the import VAT value. The rates are intended only for international movements of goods, which terminate in the UK, and represent average costs of handling, storage, customs declarations and transport to destination. Values for other consignments, including those destined for delivery in other Member States, should be based on methods 1 or 3. If importers/agents use the method 2 rates, post importation adjustments are not required. Additionally, where it is found that the amount of import VAT based on actual costs exceeds the amount declared on the basis of method 2 rates, Revenue and Customs will not seek to collect the arrears of import VAT unless the importer concerned is not registered for VAT, or if registered, is restricted in the amount of import VAT that can be claimed as input tax.

METHOD 3

In cases where methods 1 & 2 are considered inappropriate or impractical to use, individual agreements may be negotiated with your Entry Processing Unit, or with the importers local Excise and Inland Customs office. Importers or agents interested in this method, who are uncertain about which office to approach should contact the National Advice Service. Once a method 3 rate is used, post importation adjustments are not required.

3.2 Completion of the import declaration

Revenue and Customs’ data processing system (The Customs Handling of Import and Export Freight (CHIEF)) calculates the value for VAT by adding any duties, levies and additional costs to be included in the VAT value to the value declared in Box 22 of the import declaration (the SAD). Where any of these additional costs, which need to be included in the VAT value, are not included in the total invoice value (Box 22) or the other value build-up boxes (63-67), you must declare them in the Adjustment For import VAT Value box (68).

If the value for VAT is less than that which CHIEF would normally calculate for customs duty purposes, you must calculate the amount of VAT payable manually. Except at manual locations, you must enter the code ‘VAT’ in the Rate column of Box 47. You must enter the calculated payment in the amount column.

3.3 Value declaration

If goods are liable to ad valorem customs duty (that is, a duty chargeable on the basis of value), a declaration on Form C105 (Valuation Declaration) or Form C109 (General Valuation Statement), made for duty purposes, will also generally be acceptable for VAT. However, the declaration will only provide information which helps determine the customs value of the goods, and it should not be regarded as establishing their full value for VAT purposes (see paragraph 3.1).

Where goods are not liable to ad valorem duty but are liable to VAT at the standard rate, a valuation declaration for import VAT is needed only if the value exceeds £6,500 and:

• the importer is not registered for VAT; or
• the importer is registered for VAT; and
• the goods are not for the purpose of the business; or
• deduction of input tax would not be allowed; or
• The value of the goods is not being determined under customs valuation method 1 (see Notice 252: Valuation of imported goods for customs purposes, VAT and trade statistics).

There are no arrangements for registering a General Valuation Statement for VAT only entries. Individual valuation declarations must be submitted where necessary.

Whether or not a valuation declaration is required for the goods, evidence of value must be produced. Acceptable evidence is a copy of the seller’s invoice or other document against which payment will be made. This will include telex or similar messages used instead of invoices.

Further information on valuation declarations is given in Notice 251 Valuation declarations and statements and Notice 252: Valuation of imported goods for customs purposes, VAT and trade statistics.

3.4 Imported works of art, antiques and collectors’ items

Certain works of art, antiques and collectors’ items are entitled to a reduced valuation at importation. This is reached by calculating a value for duty using the appropriate duty method, adding any additional costs (see paragraph 3.1) and multiplying the total by 28.58%. Applying the 17.5% rate to this value gives an effective VAT rate of 5%. From 1 September 2006, any auctioneer's commissions relating to the sale by auction of such goods while they are subject to customs temporary importation arrangements should be no longer included in the valuation of the goods for import VAT purposes. See paragraph 3.6 for details.

3.5 Which works of art, antiques and collectors’ items are eligible for the reduced valuation?

Section 11 contains definitions of the works of art, antiques and collectors’ items that will be eligible for the reduced valuation.

You can find details of the entry procedure in HM Revenue & Customs Tariff. The following Customs Procedure Codes (CPCs) apply:

• 40 00 29 (imports from third countries);
• 49 00 29 (imports from special territories).

Previously exported works of art, antiques and collectors’ items

An imported work of art, antique or collectors’ item, as defined in section 11, will be eligible for the reduced rate provided that it had not been exported from the United Kingdom less than 12 months before the date of importation.

You can find details of the declaration procedure in HM Revenue & Customs Tariff. The following CPCs apply:

• 40 00 58 (from third countries);
• 49 00 58 (from special territories).

Further details can be found in:

• Notice 718 Margin Schemes for second-hand goods, works of art, antiques and collectors’ items; and
• The Tariff, Volume 2, Chapter 97 and Volume 3. Import entry procedure

3.6 Treatment of Auctioneer's commissions in valuing goods for import VAT purposes

As explained in paragraph 3.1, commissions connected with an importation of goods are normally included as part of the overall value of goods for import VAT purposes. However this general rule no longer applies in respect of certain imports of works of art, antiques and collector's pieces.

Where works of art, antiques and collector's pieces are temporarily imported into the UK and sold by auction while subject to the temporary importation (TI) regime, the auctioneer will charge commission to the buyer. This commission is known as buyer's premium. Where auctioned goods have been removed from TI and finally imported into the United Kingdom the buyer's premium has always been included in the value of the goods for import VAT purposes. However because the goods attract an effective reduced rate of VAT (equivalent to 5%), the premium was also taxed at this effective reduced rate. The European Court of Justice has ruled that the commission should in fact be taxed at the standard rate of VAT and the UK has therefore introduced the following arrangement with effect from 1 September 2006.

From this date buyer's premium is not to be included in the value for import VAT purposes of works of art, antiques and collectors items sold at auction within the TI regime and subsequently finally imported into the United Kingdom. This is because arrangements have been made for the commission to be taxed under the normal rules as a standard rated domestic supply. Auctioneers should consult Notice 718 Margin Schemes for second hand goods, works of art, antiques and collectors' items for further details of the new arrangements.

4. Import entry procedure

You will find details of the declaration procedure in Volume 3 of HM Revenue & Customs Tariff.

The following paragraphs give particular information about the import VAT aspects.

4.1 Normal procedure

Unless the goods are placed under excise warehousing or one of the customs arrangements listed in Public Notice 702/9: VAT: Imports Customs procedures with economic impact, End Use Relief and Free Zones, the payment of the import VAT due must normally be made either at the time of importation, or be deferred together with any duty due, provided you or your agent are approved to use the deferment scheme (see paragraph 2.2). As an alternative to deferring the payment of all the import charges on an entry to either the importer’s or the agent’s deferment account, payment of the VAT may be deferred to the importer’s account and all other charges to the agent’s. Volume 3 of the HM Revenue & Customs Tariff explains how to do this. Further information can also be found in Public Notice: 101 Deferring Duty, VAT and other charges.

The import entry must be presented at the Entry Processing Unit (EPU) where the goods are to be cleared. If the consignment is covered by a single commodity code for customs purposes, but includes goods liable to VAT at both the standard and zero rate (such as clothing for adults and children), the importer or agent must complete a separate item on the entry for the goods liable to each rate of VAT. Special rules apply to the completion of the tax lines in the calculation of taxes box (Box 47) depending on whether the entry is presented at a manual or customs computerised location.

4.2 Amendment of the declaration

Where an amendment of the declaration is made after the goods have been released out of official charge and this results in less import VAT being payable than was originally declared and paid, you can reclaim the higher amount of tax as input tax in the normal way. You can also use the procedure described in paragraph 2.6. Where amendment of a declaration results in more import VAT being payable, you must submit the additional payment, and a completed Form C18 to the EPU concerned. The additional payment will appear on the import VAT certificate (Form C79), which is the official evidence for input tax deduction (see section 8).

4.3 Postal imports

Consignments (other than International Datapost/EMS packets) not exceeding £2000 in value

If you are registered for VAT and are importing goods in the course of your business and a customs declaration accompanies the goods showing:

• your VAT registration number; and
• the nature, quantity and value of the goods,

you do not have to pay immediately the VAT due at importation. Instead, you may account for the VAT in Box 1 of the VAT return for the period covering the importation. You can claim input tax deduction under the normal rules on the same return. No import VAT certificate (Form C79) will be issued. The evidence to support your claim will be the invoice from your foreign supplier.

If your VAT number is not clearly shown on the postal package you may be charged VAT. A cash refund will not be made. To support your claim to import tax you should keep the charge label, postal wrapper and any customs declaration (that is, Form CN22 or Form CN23) that was attached to the package.

International Datapost/EMS packets not exceeding £2000 in value

Royal Mail/Parcelforce will ask you for payment of VAT when the package is delivered. You must keep the charge label which was attached to the package to support any claim to input tax. You cannot defer payment of import VAT and duty on these consignments.

Consignments exceeding £2000 in value entered to home use and free circulation

For these importations - whether or not by International Datapost/EMS - you must lodge a declaration on Form C88 (which will be sent to you) and return it to Customs with an invoice and/or other acceptable evidence of the value of the goods. You will have to pay the import VAT and any other charges due at importation immediately, unless you are approved to use the deferment scheme. After payment you will be sent a copy of the declaration to support any claim to input tax deduction. For further information regarding postal imports you should refer to Customs Notices 143 and 144.

4.4 Goods imported from outside the EC which are destined for another EC member State

If you import goods from outside the EC which are then consigned to a destination in another EC member State you must normally either:

• put the goods into free circulation in the UK, through the payment of any customs duty and/or import VAT due; or
• place the goods under the external Community Transit arrangements, in which case any duty and/or import VAT will be payable in the EC member State of destination. See notice 750: Community/Common Transit for further information on the community transit procedure.

In short, you will not normally be able to put goods into free circulation in one EC Member State and pay import VAT in another. However, you may wish to take advantage of a VAT relief for goods you import and put into free circulation in the course of a zero-rated supply of those goods to a taxable person in another member State (see Notice 702/7: Import VAT relief for goods supplied onward to another country in the European Community).

4.5 ATA Carnets

An ATA Carnet is an international customs document that simplifies the customs formalities for goods temporarily imported or exported.

Further information can be found in Notice 104: ATA and CPD Carnets and 702/9: VAT Imports: Customs procedures with economic impact, End Use Relief and Free Zones.

4.6 Goods Imported under Temporary Importation Relief (TI)

Temporary Importation Relief (TI) enables you to obtain relief from import VAT and customs duties on a range of goods imported from outside the EC, provided that they are intended for re-export within a specified time (usually a maximum of two years).

Further information can be found in Section 3 of Notice 702/9 VAT: Imports Customs procedures with economic impact, End Use Relief and Free Zones, Notice 200: Temporary Importations, Notice 306: Temporary Importation-containers and pallets and Notice 308: Temporary Importation - Means of Transport.

5. Relief from import VAT

5.1 Permanent imports

Subject to certain conditions, you can import some types of goods without payment of import VAT. The VAT relief follows the customs duty reliefs that are explained in the notices listed below.

Notice No.

317 Imports by charities free of duty and VAT

340 Importing scientific instruments free of duty and VAT

341 Importing donated medical equipment free of duty and VAT

342 Importing miscellaneous documents and other related articles free of duty and VAT

343 Importing capital goods free of duty and VAT

361 Importing museum and gallery exhibits free of duty and VAT

362 Imported antiques

364 Importing decorations and awards: free of duty and VAT

365 Importing animals for scientific research free of import duties and VAT

366 Importing biological and chemical substances for research free of duty and VAT

367 Importing commercial samples of negligible value: free of duty and VAT

368 Importing inherited goods free of duty and VAT

369 Importing blood grouping, tissue typing and certain therapeutic substances - free of duty and VAT

371 Importing goods for disabled people free of duty and VAT

373 Importing visual and auditory materials free of duty and VAT

374 Importing goods for test free of duty and VAT

5.2 Goods under a customs suspensive arrangement

If you import goods from outside the EC, and place them under one of the customs arrangements listed in Notice 702/9 VAT: Imports Customs procedures with economic impact, End Use Relief and Free Zones, the importation for VAT purposes is not regarded as having taken place until you declare the goods for free circulation in the UK. Import VAT is then chargeable. All the conditions applicable to the appropriate customs duty procedure, including the declaration and provision of entry, security etc, will apply for VAT purposes, even where import VAT is the only charge due.

You can move goods from one suspensive regime to another, for example, from customs warehousing to Inward Processing Relief suspension, without payment of import VAT.

However for goods entered to Inward Processing Relief under the drawback system, End-Use relief (other than the continental shelf), Temporary Importation with partial relief or outward processing relief you must pay the import VAT at the time of importation. See Notices 221: Inward processing relief, 200: Temporary Importation, 235: Outward Processing Relief, and 770: End-Use Relief for further information.

Further information is contained in Notice 702/9 VAT: Imports Customs procedures with economic impact, End Use Relief and free zones.

5.3 Re-importation of goods temporarily exported for process or repair

If you re-import goods that were temporarily exported outside the EC territory for repair, service, making up or processing see Notice 702/9 VAT: Imports Customs procedures with economic impact, End Use Relief and free zones, section 7. You can find the duty relief procedures and entry procedures in Notice 235 - Outward processing Relief.

5.4 Goods re-imported in the same state

If you re-import your own goods in the same state as they were exported, you need not pay import VAT provided:

• the goods were last exported from the EC by you or on your behalf; and
• the goods meet conditions 2-5 in the checklist for customs duty Returned Goods Relief in section 5 of Notice 236, Importing returned goods free of duty and VAT; and
• any import VAT chargeable on the goods was accounted for or paid and neither has been, nor will be reclaimed; and
• the goods were not exported with a view to avoiding or abusing the normal VAT supply rules by using Returned Goods Relief.

This relief is intended primarily to avoid import VAT having to be paid and reclaimed, perhaps several times, for example, on goods taken outside the EC on approval and brought back unsold or on tools and equipment returned after use outside the EC.

There are various returned goods reliefs, each of which has its set of limiting conditions, and in certain circumstances you may have a choice of more than one. A complete list of returned goods relief Customs Procedure Codes detailing the type of procedure for which goods may be entered can be found in Volume 3, Appendix E of HM Revenue and Customs Tariff. You will find details of the entry procedures for claiming relief on reimported goods in Notice 236: Importing returned goods free of duty and VAT.

5.5 Where can I find more information about import VAT reliefs?

Import VAT reliefs are described fully in Volume 3 of the Tariff. The main VAT reliefs fall within the following CPC headings:

6. Unregistered persons

Unless otherwise indicated in this, or other sections, all the procedures in this notice also apply to unregistered persons.

6.1 Goods imported for business purposes

You must declare goods on importation and pay or defer the import VAT in the same way as anyone who is registered for VAT. However, as you are not entitled to reclaim the import VAT you pay as input tax, you do not receive an import VAT certificate (C79 - see section 8). However you can claim import VAT paid on goods when:

• VAT was overpaid at importation. You should make a written request on Form C285 as explained in paragraph 2.6 for direct repayment through the duty adjustment system; or
• the goods are not what you ordered or are otherwise not in accordance with contract. You will find details of the procedure you must follow in Notice 266: Rejected imports: repayment or remission of duty and tax.

6.2 Goods imported for non-business purposes

You do not have to complete a declaration on the SAD (Form C88) unless you are importing the goods as freight, you are claiming one of the relief’s listed in paragraph 5.1 or you are claiming an exemption. If these reliefs are not applicable, you can only claim any import VAT paid in the circumstances explained in paragraph 6.1.

6.3 Personal reliefs

As well as the reliefs described in paragraph 5.4 and some of the reliefs described in paragraph 5.1, you can also claim relief from import VAT on specific categories of goods. These reliefs are explained in the notices listed below:

• Notice 3: Bringing your belongings and private motor vehicle to the UK from outside the European Community.
• Notice 8: Sailing your pleasure craft to and from the United Kingdom.

7. Importing computer software

7.1 Why have a separate section for computer software?

Imported computer software may be classified as goods and/or services. This section tells you how to decide whether you are importing goods or services, and explains how you should account for any VAT due on them.

7.2 When is computer software regarded as goods and how is it treated for import VAT?

Goods are the tangible carrier medium on which the software resides.

(a) If the tangible carrier medium is magnetic tape, disk, diskette compact disk (CD) and read only CD videos - the tax treatment depends on whether, at the time of importation, the items are ‘normalised’ (off the shelf) or ‘specific’ (custom made) products. See paragraphs 7.4 and 7.9 for more detailed information.

(b) If the information resides on semiconductors, integrated circuits or similar devices or articles incorporating such circuits or devices, you must pay Import VAT on the whole value of the medium/device, including the information residing on it.

7.3 When is computer software regarded as services and how is it treated for import VAT?

Services may comprise the data, program and/or instructions but not sound, cinematographic or video recordings.

The tax treatment of services received from outside the EC depends on whether they are ‘normalised’ (off the shelf) or ‘specific’ (custom made) software. See paragraphs 7.5 and 7.9 for more detailed information.

If you receive computer software services from suppliers outside the fiscal (VAT) territory of the EC (section 9) you will also need to read Notice 741 VAT: Place of supply of services.

7.4 What is ‘normalised’ software?

Products containing ‘normalised’ software are mass produced items which are freely available to all customers and usable by them independently after installation and limited training in a standard form to carry out the same applications or functions. They are made up of a coherent set of programs and support material and often include the service of installation, training and maintenance. Personal computer software, home computer software and game packages are in this category. Also included are standard packages adapted at the supplier’s instigation to include security or similar devices.

7.5 How is ‘normalised’ software treated for import VAT?

Importations of ‘normalised’ items are regarded as importations of both:

• goods (made up of the carrier medium); and
• services (the data and/or the instructions).

Where the goods and services are not identified separately, the whole importation is treated as an importation of goods.

If you are a taxable person, and the values of these items are separately identified, you may pay VAT on importation only on the cost or value of the carrier medium. You should exclude from the value for import VAT any of the services in section 12 of Notice 741 VAT: Place of supply of services that are supplied to a UK business by a person who belongs outside the EC. VAT on the supply of these services must be accounted for under the ‘reverse charge’ procedure in section 15 of Notice 741 VAT: Place of supply of services.

7.6 How are ‘normalised’ items valued for import VAT?

The valuation rules for import VAT in paragraph 3.1 apply to ‘normalised’ items.

7.7 If the normalised software is supplied free of charge

If the software is supplied to you free of charge, for example in an inter-company transaction, you will pay VAT on the value in accordance with the valuation rules in paragraph 3.1.

7.8 Should the value of licences be counted as taxable turnover?

Yes. The value of licences etc count as taxable turnover for VAT registration purposes.

7.9 What is ‘specific’ software?

‘Specific’ products are;

• items made to customers’ special requirements, either as unique programs or adaptations from standard programs;
• inter-company information data and accounts;
• enhancements and updates of existing ‘specific’ programs; and
• enhancements and updates of existing ‘normalised’ programs supplied under contractual obligation to customers who have bought the original program.

7.10 How is ‘specific’ software treated for import VAT?

The importation of a ‘specific’ item is made up of an importation of goods (the carrier medium) and a supply of services (the data and/or the instructions). To simplify import procedures the carrier medium is treated as a supply of services to you. No import VAT is charged on the carrier medium at importation. If you, as a UK customer, receive such services from outside the EC, you may have to account for VAT in the UK under the ‘reverse charge’ procedure explained in Notice 741 VAT: Place of supply of services.

7.11 Tax treatment of ‘specific’ items supplied to you free of charge

You will not have to pay any VAT for ‘specific’ items supplied to you free of charge.

7.12 Declaration procedure

When you import ‘specific’ items you should;

• enter ’VAX’ after the VAT rate code in the rate column of box 47 of the declaration on the SAD (Form C88); and
• complete boxes 1 to 3 and 9 to 11 of Form C105A or C105B.

If you are using Form 105B include in box 9 the following declaration:

‘The goods entered on the attached import SAD are ‘specific’ items as defined in VAT Notice 702’

7.13 Transmission and provision of information by satellite, telephone, telex, fax etc

The transmission and provision of information by satellite, telephone, telex, facsimile etc. is treated as a service. You will find more information on this in Notice 741 VAT: Place of supply of services.

8. Import VAT certificate (C79)

(Referred to in paragraphs 2.3, 4.2 and 6.1)

8.1 What this section is about

This section explains the current arrangements for the issue of evidence that import VAT has been paid.

8.2 Basic information about import VAT certificates

You need to hold official evidence of VAT paid on imported goods before you can recover the VAT as input tax. The normal evidence is the monthly certificate, known as Form C79. It does not in itself allow you to claim back the VAT you have paid which must, in all cases, be deductible under the normal input tax rules.

We send the certificates (form C79) to the VAT registered person whose VAT registration number, plus a three-digit suffix, is shown in Box 8 of the import declaration. The whole number is known as the Trader Unique Reference Number (TURN). You must take great care to use the correct TURN. If not, the VAT you have paid may not appear on your certificate and may even end up on another person’s certificate. Similarly, you may find someone else’s import VAT on your certificate.

WARNING: We will take action against agents/importers who persistently quote incorrect TURNs. This may include prosecution.

8.3 What does the certificate cover?

The C79 certificate is issued in connection with most import procedures, and also post importation corrections and removals from a customs warehouse. These are listed in paragraph 8.17. There are some types of importation that do not appear on the certificate. These are listed in paragraph 8.18 together with the acceptable evidence of payment shown against each type.

8.4 What does the C79 certificate look like and what information is on it?

The certificate is made up of twin sided A4 sheets with a blue print background. A specimen of the format of a certificate is reproduced in paragraph 8.5.

If you hold more than one TURN suffix, not all immediate payment and Flexible Accounting System (FAS) paid VAT transactions can be linked to the proper suffix. Those that cannot be linked will be listed at the beginning of the certificate under your prime TURN (normally your VAT registration number plus the suffix ‘000’).

Neither the agent’s VAT number nor the agent’s reference number appears on the certificate for immediate payment and FAS paid transactions. If this causes you particular difficulties you may wish to consider arranging duty deferment facilities. The Post Clearance section of the Customs Entry Processing Unit (EPU) at the port of entry can advise you which agent handled your declaration.

The accounting date will be shown against each item on the certificate, and transactions will appear on the certificate for the month covering that accounting date - for example, transactions bearing an accounting date of October will normally appear on the October C79 certificates. For transactions paid by duty deferment the accounting date is normally the date of clearance of the goods. For immediate payment and FAS items the accounting date may, in some instances, be later than the date of the declaration. So some goods cleared in late October may have a November accounting date, and will therefore appear on the November certificate.

Transactions that are the subject of an accounting query will appear on the first certificate issued after the query has been dealt with.

A single total of VAT for the period will appear at the end of the final page.

8.5 Example of a certificate

(Referred to in paragraph 8.4)

**YOU MUST KEEP THIS CERTIFICATE TO SUPPORT YOUR CLAIM TO INPUT TAX**

8.6 When are C79 certificates issued?

Certificates cover accounting transactions made in each calendar month and are issued on or about the 12th day of the following month. For example, October certificates (certificates covering transactions with accounting dates in October) are issued on or about 12 November. We post the certificates direct to your address as shown on the main VAT register. This means that, for VAT group registrations, a single certificate is issued to the address of the representative member of the group. Certificates cannot be sent to an address other than that on the main VAT register.

8.7 How to use the C79 certificate

The original certificate or Customs issued replacement is the prime evidence for claiming input tax deduction. However, you may copy and distribute certificates as required for internal accounting purposes. We will also allow a self-accounting branch to use a photocopy of the certificate as an accounting document for the purpose of input tax deduction, provided the original is made available for inspection if requested by the control officer.

The date when the VAT shown on the certificate may be treated as input tax is normally the accounting date alongside each item, not the date when the certificate is issued. So, for example, if your VAT return period ends 31 October, you may treat as input tax for that period, subject to the normal rules, VAT paid shown on your October certificate (issued 12 November).

If you have non-standard tax periods and the issue date of the 12th of the month causes you difficulties, you may wish to consider applying to your local VAT office (LVO) for permission to estimate input tax.

8.8 Isle of Man VAT-registered importers

We do not issue certificates to importers who are registered for VAT in the Isle of Man. These are importers whose TURNs currently begin ‘000’, ‘001’ or ‘002’. If you are an importer based in the Isle of Man you need manual evidence. To get manual evidence you must currently present an additional copy of the declaration to Customs at the place of importation marked prominently ‘VAT’ at the top and showing the amount of VAT payable in Box 44 of the declaration on the SAD (form C88) or Box 14 of the C1451 SPIC (simplified procedures for import clearance). The copy is authenticated by Customs and returned to you via your agent. For goods removed from a customs warehouse copies of the declaration are issued.

8.9 Health Authorities and Government Departments

We do not issue certificates to health authorities and government departments whose TURNs begin with HA or GD.

When VAT is paid at the point of importation and the authority or department is entitled to input tax deduction, a Revenue & Customs authenticated copy of the declaration will be issued as evidence.

8.10 Negative amounts on certificates

Negative amounts may appear on your certificate. These are either repayments of import VAT (see paragraph 8.11) or corrections of errors.

8.11 Direct repayment of VAT

If you apply for a direct repayment of import VAT which you have overpaid (see paragraph 2.6) the VAT will appear as a negative amount on your next VAT certificate. As you must give a written declaration that the VAT overpaid neither has been nor will be reclaimed as input tax, you should not include the negative amount in your VAT account.

8.12 Lost or missing certificates

We keep for a period of six years, microfiche copies of all monthly certificates issued. You can get replacements of lost or missing certificates from:

HM Revenue & Customs
VAT Central Unit, Microfilm Section
8th Floor, Alexander House
Victoria Avenue
Southend-on-Sea
SS99 1AU

You need to request them in writing, by faxing your request to - fax no. 01702 367385 on business headed paper, quoting your VAT registration number and the month(s) for which replacement is required. Replacement certificates will be issued to your VAT registered address.

Before you request replacement certificates, you need to be sure that a certificate should, in fact, have been issued (see paragraph 8.16).

VCU Microfilm section cannot answer general queries about certificates. You should contact the National Advice Service on 0845 010 9000.

If there is not enough time for you to get a replacement certificate before your VAT return is due, contact your LVO to arrange use of alternative evidence or estimation of input tax.

8.13 Newly registered traders

If you are newly registered for VAT, it is possible that the system may try to process import transactions using your new VAT registration number before that number has been recorded on the main VAT register. A certificate cannot be produced in those circumstances. If you are newly registered, and do not receive a certificate you are expecting, you should first contact the National Advice Service on 0845 010 9000 to check whether your VAT registration number has been entered on the main register. If it has not, your local VAT office (LVO) will consider alternative evidence for those transactions.

8.14 Queries about additional items on certificates

Paragraph 8.2 explains how someone else’s import VAT can appear on your certificate. If you discover such an item you must not deduct as input tax the amount shown. If you or the agent who made the import declaration later corrects the error, a negative amount will appear on your next certificate. If you have already wrongly deducted the VAT shown, you must show the negative amount as a credit on the VAT deductible side of your account. This will reduce the amount of input tax you are able to claim in that period.

8.15 Queries about items missing from certificates

If you consider that any VAT amounts paid or deferred are missing from a certificate ask yourself:

• Could the item be outside the scope of the certificate?
  Paragraph 8.18 explains which imports do not appear on certificates. Where this is so, you will receive the form of evidence listed.
• Am I newly registered?
  If ‘yes’ follow the action in paragraph 8.13
• Is the item likely to have an accounting date within the month covered by the certificate?
  If ‘no’ wait for the item to appear on your next certificate (See paragraph 8.4).

If none of these explanations apply, you or your agent may have entered your TURN incorrectly on the entry and you should contact the centralised processing unit dealing with post-clearance non-revenue amendments. Their address is Custom House, Furness Quay, Salford. M50 3XN. Tel: 0161 261 7201. Fax: 0161 261 5484. However where there is a revenue implication you should contact the centralised processing unit dealing with such matters. Their address is Custom House, Furness Quay, Salford M50 3XN. Tel: 0161 261 7119. Fax: 0161 261 5484.

8.16 Further help or advice

If you need further help or advice on the C79 certificate system you should contact our National Advice Service on 0845 010 9000.

8.17 Importations which appear on the certificate

(Referred to in paragraph 8.3)

8.18 Importations which do not appear on the certificate

(Referred to in paragraph 8.3)

9. VAT territory of the European Community (EC)

(Referred to in paragraphs 1.1, 1.6 and 7.3)

VAT TERRITORY OF THE EUROPEAN COMMUNITY (EC)

The fiscal (VAT) territory of the European Community consists of:

• Austria;
• Belgium;
• Cyprus;
• Czech Republic;
• Denmark, except the Faroe Islands and Greenland;
• Estonia;
• Finland;
• France, including Monaco;
• Germany, except Busingen and the Isle of Heligoland;
• Greece;
• Hungary;
• The Republic of Ireland;
• Italy, except the communes of Livigno and Campione d'Italia and the Italian waters of Lake Lugano;
• Latvia;
• Lithuania;
• Luxembourg;
• Malta;
• Netherlands;
• Poland;
• Portugal, including the Azores and Madeira;
• Slovakia;
• Slovenia;
• Spain, including the Balearic Islands but excluding Ceuta and Melilla;
• Sweden;
• United Kingdom, including the Isle of Man.

There are some "special territories" which are within the EC customs area but outside the EC fiscal (VAT) area:

• Andorra;
• The Åland Islands (Finland);
• The Channel Islands;
• The Canary Islands (Spain);
• The overseas departments of France (Guadeloupe, Martinique, Reunion and French Guiana);
• Mount Athos (Greece).

Goods entering the UK from the "special territories" will, for VAT purposes, be treated as imported goods.

Note: The Vatican City is not part of the EC, neither is Gibraltar regarded as part of the EC for VAT or customs purposes.

10. Customs suspensive arrangements

(Referred to in paragraphs 4.1 and 5.2)

Details of Customs suspensive arrangements are now contained in Public Notice 702/9 VAT: Imports Customs procedures with Economic Impact, End Use Relief and Free Zones.

11. Definition of articles which are eligible for importation at a reduced valuation giving an effective VAT rate of 5%

(Referred to in paragraph 3.5)

This section applies only to VAT.

11.1 Works of art

• Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (Tariff heading 9701).
• Original engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour of one or several plates executed entirely by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process (Tariff code 9702 00 00).
• Original sculptures and statuary, in any material, provided that they are executed entirely by the artist; sculpture casts (Tariff code 9703 00 00). See Notice 718: Margin schemes for second-hand goods, works of art, antiques and collectors items, for the definition of sculpture casts.
• Tapestries (Tariff code 5805 00 00) and wall textiles, made by hand from original designs provided by artists, provided that there are not more than eight copies of each.
• Individual pieces of ceramics executed entirely by the artist and signed by him.
• Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmiths’ and silversmiths’ wares.
• Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included.

11.2 Antiques

• Objects other than works of art or collectors’ items, which are more than 100 years old (tariff code 9706 00 00).

11.3 Collectors’ items

• Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, franked or if unfranked not being of legal tender and not being intended for use as legal tender (tariff code 9704 00 00).
• Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest (tariff code 9705 00 00).

11.4 Items of historical significance

History - the study of past events, especially human affairs.

An article which is not 100 years old may be eligible for the scheme under this heading if it is of historical significance because of it’s uniqueness, or by having a direct association with an historical person or event, or is a rare example marking an important change in technical or artistic development in a particular field. Items, which were mass-produced or are merely the products of a bygone age, are unlikely to be eligible.

The list of examples shown is by no means exhaustive but gives general guidelines on the types of article eligible under this heading.

Postage stamps: Issued by a country to mark its independence

Motor vehicles which:

• Possess a certain scarcity value;
• are not normally used for their original purpose;
• are the subject of transactions outside the normal trade in similar utility vehicles;
• are of high value; and
• illustrate a significant step in the evolution of human achievements or a period of that evolution.

These preconditions can be taken to apply to;

• Vehicles in their original state, without substantial changes to the chassis, steering or breaking system, engine etc, at least 30 years old and of a model or type which is no longer in production;
• All vehicles manufactured before 1950, even if not in running order.

Also included as collectors’ pieces of historical interest are;

(a) motor vehicles, irrespective of their date of manufacture, which can be proved to have been used in the course of an historic event;

(b) motor-racing vehicles, which can be proved to be designed, built and used solely for competition and have scored significant sporting successes at prestigious national or international events.

The above notes apply mutatis mutandis to motorcycles.

If you wish to import a vehicle covered by the guidelines above, you are advised to telephone the Classification Advice Line on 01702 366077 Option 4, before making a purchase to ensure that your vehicle will be eligible for the reduced rate of VAT at import.

Products designed by famous historical craftsmen.

Such as;

• De Morgan or William Morris tiles and ceramics;
• Peter Waals desks and tables;
• Mcintosh and William Morris home furnishings (eg carpets, curtains, vases, clocks, chairs)
• decorative glassware produced by Galle, Lalique and Tiffany.

Medals

(Military)

• All military medals awarded up to and including World War 1;
• medals awarded after World War 1 which are inscribed with the recipients name;
• individual military medals awarded after World War 1 for an act of gallantry, outstanding service etc whether or not they bear the recipients name.

(Civilian)

• All civil medals awarded individually which bear the recipients name.

Militaria

General military items up to and including World War 1 such as weapons, badges etc; items of militaria which belonged to, or were used by, a famous person who won a gallantry award.

12. List of useful VAT and Customs notices

VAT Notices

700 The VAT Guide

700/1 Should I be registered for VAT?

702/7 Import VAT relief for goods supplied onwards to another country in the European Community

702/9 VAT: Import Customs procedures with economic impact, End Use Relief and Free Zones

703 Exports and removals of goods from the United Kingdom

718 Margin Schemes for second-hand goods, works of art, antiques and collectors’ items

725 VAT: The Single Market

731 Cash accounting

728 Motor vehicles, boats, aircraft: intra-EC movements by private persons

741 VAT: Place of supply of services

744B Freight transport and associated services

Customs notices

60 The Intrastat General Guide

100 Flexible accounting scheme

101 Deferring duty, VAT and other charges

197 Excise goods: Holding and movement

220 Temporary importation

221 Inward processing relief

235 Outward processing relief

236 Returned goods: free of duty and tax

252 Valuation of imported goods for customs purposes, VAT and trade statistics

266 Rejected imports: Repayment of duty and VAT

501 A brief guide to import procedures

750 Community/Common Transit (+ supplement of 2002)

Do you have any comments?

We would be pleased to receive any comments or suggestions you may have about this notice. Please write to:

HM Revenue and Customs
Frontiers/Imports
6th floor North
Portcullis House
Southend-on-Sea
SS2 6AL

Please note this address is not for general enquiries. You should ring our National Advice Service about those.

If you have a complaint or suggestion

If you have a complaint please try to resolve it on the spot with our officer. If you are unable to do so, or have a suggestion about how we can improve our service, you should contact one of our Regional Complaints Units. You will find the telephone number under ‘Revenue & Customs' or under 'Customs and Excise' in your local telephone book. Ask for a copy of our code of practice ‘Complaints and putting things right’ (Notice 1000). You will find further information on our website at http://www.hmrc.gov.uk.

If we are unable to resolve your complaint to your satisfaction you can ask the Adjudicator to look into it. The Adjudicator, whose services are free, is a fair and unbiased referee whose recommendations are independent of Revenue & Customs.

You can contact the Adjudicator at:

The Adjudicator's Office
Haymarket House
28 Haymarket
LONDON
SW1Y 4SP

Phone: (020) 7930 2292
Fax: (020) 7930 2298
E-mail: adjudicators@gtnet.gov.uk
Internet: http://www.adjudicatorsoffice.gov.uk/

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