When your business imports goods or receives services from overseas, special VAT rules apply.

Imported goods

• Goods imported into the UK may incur VAT (and possibly customs duty). You must declare and pay VAT due.
• If you are VAT-registered, you may reclaim import VAT if the goods are used for taxable supplies.

Imported services

• When services are supplied from abroad to a UK business, the “place of supply” and reverse charge rules may apply. In effect you account for VAT as if you supplied the service yourself.
• This can lead to a VAT registration requirement even if turnover is under the usual threshold in some cases.

Important: Keep all documentation for imports and overseas services and ensure your accounting system handles reverse charge correctly.