Certain oils liable to excise duty are also liable to an
ad-valorem customs duty when imported from countries outside the
EU. Directions concerning customs duty and the import of oils is
given in C2-38 ‘Hydrocarbon Oils: Imports’ and in the
section on ‘Imports’ within this guidance
HCOTEG50000
(For further information on customs duty see
Public Notice 171 - Hydrocarbon Oils: Customs
Duty).
The current rates of excise duty are set out in the Tariff
(Volume 1 paragraph 12.12).
Current and historic rates of excise duty can be found on our
Internet site at www.hmrc.gov.uk.
This information may also be obtained by contacting the
National Advice Service on
0845 010 9000.
The principle Act relating to VAT liability is the Value Added
Tax Act 1994 and extracts of this may be found within this guidance
in the Section on VAT
HCOTEG160000.
Receipts from other Member States which are of EU origin or
of non-EU origin upon which customs duty has been paid, i.e.
Community goods, are not imports for VAT purposes. Such goods are
dealt with under the acquisition tax arrangements. Import VAT
continues to be collected on oils from Third Countries.
The standard rate of VAT is usually chargeable on oils on
which un-rebated rates of duty are to be paid.
Heavy oil which is marked or delivered under a marking waiver
from approved remote marking premises (i.e. after removal from
warehouse) and which is supplied in loads of 2,300 litres or less
becomes entitled to excise duty rebate and at the same time the VAT
liability changes from the standard rate to a reduced rate of 5%.
(More information on the reduced rate is available in VAT
Public Notice 701/19 (Fuel and Power)).
Composite articles containing oils are chargeable with VAT
according to the nature of the article whether or not the oil
content is liable to duty.
Fuel substitutes and gas for use as road fuel are chargeable
at the standard rate of VAT.
General directions about VAT are given in Notices 700
‘The VAT Guide’, and 702 ‘VAT on Imports and
Warehoused Goods, and VAT leaflet 701/19/95 ‘Fuel and
Power’.
Directions concerning
VAT on Oils are given within this guidance at
HCOTEG160000 and in
Public Notice 179 Section 15.
