Work out import VAT without confusing it with permanent cost.
Work through an import VAT estimate while keeping tax, recoverable VAT and cash requirements separate.
Scope: ordinary commercial imports to Great Britain. Check route-specific rules and specialist treatment separately.
The short answer
An import VAT estimate needs the correct VAT value and rate. VAT value can include more than the goods invoice. Whether VAT is recoverable and whether it is paid at import are separate questions; do not subtract VAT from economic cost merely because a business says it is registered.
Build the VAT value first
HMRC guidance starts from the customs value and adds relevant duty, taxes and incidental expenses to the first destination, with further-destination rules where applicable. Check whether transport or other costs are already included. Establish the applicable treatment before entering a percentage into a calculator.
Separate three figures
Keep the import VAT amount, the recoverable share and the cash movement visible. A recoverable amount is not normally treated as permanent product cost in the scenario, but the claim depends on the actual facts and evidence. Postponed VAT accounting changes the accounting/payment timing; it is not a blanket exemption from import VAT.
Use a controlled example
Choose a hypothetical VAT value of £1,000 and a manually supplied test rate of 10%. The arithmetic is £100. This 10% is only a test input, not a UK rate claim for any product. If your scenario assumes 50% recovery, £50 remains in the economic-cost scenario. Whether cash is due at import still depends on the payment/accounting treatment.
Before you rely on the result
Check the goods’ VAT treatment, valuation additions and the recovery position. Where PVA is intended, check HMRC eligibility and arrange the correct declaration instructions. Retain the supporting statement or certificate appropriate to the actual treatment and reconcile your records; an estimate is not a VAT return.
Use the tool and keep the assumptions
The free landed-cost tool separates cost and cash. Enter verified rates and explicit zeroes only where justified. Keep unknown charges visible. The PVA guide explains the next checks; the commercial workflow can retain an estimate for comparison with actual costs.
Official sources / what may change
Sources reviewed 5 October 2026. Rates, measures and route-specific requirements may change. Verify them for the actual movement; no tariff rate is preselected by this guide.