Value Added Tax Act 1994 section 16

Application of customs enactments

Section 16 explains how existing customs and excise legislation is applied to VAT charged on goods imported into the United Kingdom.

• The customs and excise laws that govern import duties also apply to VAT charged on imported goods, so HMRC can use the same administrative and enforcement powers for import VAT as it does for customs duties.
• VAT on imported goods is treated as though it were an import duty, meaning it follows the same charging, collection and payment procedures that apply to customs duties under Part 1 of the Taxation (Cross-border Trade) Act 2018.
• This alignment means importers must account for VAT at the point of importation using the same customs declarations, procedures and timescales that apply to other import duties.
• Regulations may also make special provision for VAT in relation to postal packets, reflecting the practical differences in how goods arrive by post compared with standard freight imports.