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Imports: VAT

Question for Department for International Trade

UIN 137887, tabled on 14 January 2021

To ask the Secretary of State for International Trade, what discussions she has had with HMRC to simplify the application of VAT charges on imported goods.

Answered on

20 January 2021

HM Revenue & Customs (HMRC), HM Treasury and the Department for International Trade work closely together to ensure the interests of traders are taken into account in developing HM Government’s policies on Value Added Tax (VAT) and helping businesses understand the policies.

Following the end of the transition period, businesses can account for import VAT on goods from European Union (EU) and non-EU countries through their periodic VAT returns, helping with their cash flow. Changes to other VAT rules on the import of goods have been made to address non-compliance and ensure UK high street businesses are not disadvantaged by competition from overseas businesses bringing in VAT-free imports.