How Do I Reclaim Import VAT on Overseas Goods

Businesses that import goods into the UK often have to pay import VAT at the border. The good news is that you can usually reclaim this VAT through your VAT return, but only if you follow the correct process and keep the right documentation. This guide explains how import VAT works, how to reclaim it, which records you need and in my opinion the steps that make the process far easier and less stressful.

Import VAT is not the same as normal VAT you charge on sales. It is VAT charged by HMRC when goods enter the UK from overseas. Many businesses panic when they see import VAT on courier invoices or customs paperwork, but reclaiming it is usually straightforward once you understand how the system works.

This article explains everything clearly so that you can reclaim what you are entitled to without delays or errors.

1. What Is Import VAT

Import VAT is the VAT charged when goods enter the UK from outside the UK. It applies whether you import goods from:

  • the EU

  • the USA

  • China

  • Asia

  • anywhere outside the UK

HMRC charges VAT on the value of the goods plus shipping, insurance and duty. You normally pay this upfront at the border unless you use a deferral or postponed VAT scheme.

In my opinion

Many new importers are shocked by import VAT, but it is simply a timing issue. As long as you are VAT registered, you usually get it back.

2. Who Can Reclaim Import VAT

You can reclaim import VAT if all the following apply:

  • you are VAT registered in the UK

  • the goods are for your business use

  • you have the correct import evidence

  • the goods are not specifically blocked from VAT deduction

  • the import documents show your business name

You cannot reclaim import VAT if:

  • you are not VAT registered

  • the goods are for personal use

  • the import declaration is in someone else’s name

  • the goods are exempt without credit

  • the VAT relates to blocked items such as business entertainment

3. The Three Main Ways Import VAT Is Charged

There are three ways import VAT can be handled depending on how you import the goods.

1. Postponed VAT Accounting (PVA)

You do not pay VAT at the border.
Instead you reclaim VAT through your VAT return using your monthly PVA statement.

2. Courier pays HMRC then charges you

Couriers such as DHL, FedEx or UPS pay HMRC on your behalf then invoice you.

3. Freight agent or customs broker invoices you

A logistics company pays import VAT then charges your business.

Each method has a different reclaim process but the end result is the same.

In my opinion

Postponed VAT accounting is by far the easiest method because you never have to pay the VAT upfront.

4. How to Reclaim Import VAT Using Postponed VAT Accounting (PVA)

Postponed VAT Accounting allows you to reclaim import VAT on your normal VAT return without actually paying it first.

Step 1: Download your monthly PVA statement

You can find it in your Government Gateway under “Postponed Import VAT Statements”.

Step 2: Enter the import VAT on your VAT return

Use the following boxes:

  • Box 1: Import VAT to reclaim

  • Box 4: Same figure (input tax)

  • Box 7: Value of goods imported

You effectively pay and reclaim the VAT at the same time which means no cashflow impact.

In my opinion

I recommend all importers use PVA because it is the cleanest method and avoids cashflow problems.

5. How to Reclaim Import VAT Paid to Couriers or Freight Agents

If your courier or freight agent paid the import VAT to HMRC on your behalf, they will invoice you for it.

You must have:

  • a C79 import VAT certificate
    or

  • a customs invoice showing VAT paid on your behalf

Step 1: Obtain the C79 certificate

HMRC issues these monthly.
They are posted to your registered business address, not available online.

Step 2: Keep the courier invoice

This shows what you were charged.

Step 3: Add to your VAT return

  • Box 4: Input VAT from C79

  • Box 7: Value of goods imported

You cannot reclaim VAT using a courier invoice alone. You must have evidence that HMRC received the VAT.

6. What Is a C79 Certificate

A C79 is an official HMRC certificate that proves import VAT has been paid.

It shows:

  • your business name

  • your EORI number

  • the import value

  • the VAT amount

  • the month of import

You cannot reclaim VAT without it unless you use PVA.

In my opinion

Many lost VAT claims come from businesses throwing away C79 certificates without realising how important they are.

7. What Records You Must Keep to Support Your VAT Reclaim

You must keep:

  • C79 certificates or PVA statements

  • courier invoices

  • import declarations (C88 or SAD forms)

  • commercial invoices from suppliers

  • purchase orders

  • shipping documents

  • proof of payment

  • VAT return workings

HMRC expects records to be kept for at least six years.

If your business name is not on the import documents, HMRC can refuse the claim.

8. What Happens If the Import Documents Are Incorrect

If:

  • the goods were declared to the wrong EORI

  • your name is misspelled

  • the courier used their own details

  • the goods were imported in the supplier’s name

you may not be able to reclaim the VAT until the import declaration is corrected.

You can request an amendment using:

  • a C285 reclaim form
    or

  • a post entry correction through your agent

In my opinion

Always check your paperwork early because errors are easier to fix within 30 days of import.

9. Can I Reclaim VAT If I Import Goods as a Sole Trader

Yes, as long as:

  • the import documents show your trading name

  • the goods are for business use

  • you are VAT registered

If documents show only your personal name but your business is a sole trade, you can usually still reclaim the VAT.

10. Can I Reclaim VAT If the Goods Are for Selling on eBay, Etsy or Amazon

Yes. Selling online counts as a business activity.

You can reclaim import VAT on goods imported for resale.

This is true whether you sell through:

  • eBay

  • Etsy

  • Amazon FBA

  • Shopify

  • TikTok Shop

  • any other platform

The key requirement is proof that the goods relate to taxable business activity.

11. What Happens If I Am Not VAT Registered

You cannot reclaim import VAT if you are not VAT registered.

Instead the VAT becomes a cost.
Some businesses choose to register voluntarily to reclaim import VAT.

12. Common Problems Importers Face

Problem 1: No C79 received

Usually caused by:

  • wrong business address

  • no EORI number

  • courier errors

Problem 2: Courier invoice only

This is insufficient for reclaim. You must have HMRC evidence.

Problem 3: Import VAT reclaimed in the wrong VAT period

C79 VAT must be reclaimed only in the period shown on the certificate.

Problem 4: Using the supplier invoice instead of import documents

A supplier invoice does not prove VAT was paid to HMRC.

In my opinion

Most issues come from missing paperwork rather than the VAT rules themselves.

13. Real World Examples

Example 1: Using PVA

Sarah imports £20,000 of stock from China.
She uses PVA.
Her monthly statement shows £4,000 VAT.
She enters £4,000 in Box 1 and Box 4.
Her net VAT bill does not change.

Example 2: Courier paid VAT

A courier imports goods worth £10,000 and invoices Tom £2,000 VAT.
He receives a C79 certificate from HMRC.
He reclaims £2,000 on his next VAT return.

Example 3: Wrong EORI

A supplier incorrectly used their own EORI.
The VAT cannot be reclaimed until the import entry is corrected.

Example 4: eCommerce seller

Lisa imports clothing to sell on Shopify.
She uses PVA to avoid paying VAT upfront.
Her cashflow improves significantly.

14. In My Opinion: How To Make Import VAT Reclaim Simple

Based on experience, I recommend:

  • always using PVA if possible

  • checking your EORI number on every invoice

  • keeping digital copies of all import documents

  • downloading PVA statements each month

  • checking your business address with HMRC

  • using a freight agent you trust

  • keeping a VAT reclaim folder for each VAT quarter

In my opinion most VAT reclaim problems happen when paperwork is lost or delayed, not because of the rules themselves.

Conclusion

You can reclaim import VAT on overseas goods as long as you are VAT registered, the goods are for business use and you have the correct documentation such as PVA statements or C79 certificates. Postponed VAT Accounting is the simplest method because you reclaim without paying upfront. Couriers and freight agents require more paperwork, but the VAT is still reclaimable with proper evidence.

In my opinion the key to avoiding issues is keeping good records and checking all import paperwork early. Once you understand the process, reclaiming import VAT becomes routine.