In this section:
How charities can import goods VAT free
Certain donated goods can be imported free of VAT, from outside the Customs Union of the European Union (EU), by charities and other not-for-profit organisations. The goods have to be basic necessities for needy people, goods to be used or sold at charity events for the benefit of needy people, or equipment and office materials to help run an organisation for the benefit of needy people.
There are also special procedures for relief from VAT on the import of goods to help deal with disasters in the Customs Union.
This guide explains who can import goods free of VAT, what goods they can import, and what uses they can put those goods to.
On this page:
- Who can import goods free of VAT?
- Which goods are covered?
- Disposing of VAT free imported goods
- How to claim the VAT relief
Who can import goods free of VAT?
Normally if you import goods from outside the Customs Union of the EU, you have to pay import duty and VAT. However, some donated goods can be imported free of VAT, if they are imported by a charity or certain other types of qualifying organisation.
You can import goods free of VAT if you are:
- a charity registered by the Charities Commission, or the Office of the Scottish Charity Regulator
- a state organisation devoted to welfare
You can also qualify to import goods free of VAT if you are one of the following organisations, and you are run on a not-for-profit basis, and your objective is the welfare of the needy:
- hospitals
- youth organisations
- clubs, homes and hostels for the aged
- orphanages and children's homes
- organisations set up for the relief of distress caused by particular disasters in the Customs Union
- organisations concerned with the relief of distress generally, such as the British Red Cross Society or the Salvation Army
There are also reliefs from VAT when importing certain goods for disabled people. These are available to organisations principally concerned with the education of or the assistance to disabled people that we have already approved to receive the goods duty free, or to disabled people importing the goods for their own use.
More about importing goods for disabled people free of VAT in VAT Notice 371
Which goods are covered?
Goods only attract this relief from VAT if they are imported from outside the Customs Union of the EU, which comprises the EU, Turkey, San Marino and Andorra.
The goods that can be imported VAT free have to have been donated, not purchased. They are:
- basic necessities for needy people
- goods to be used or sold at charity events for the benefit of needy people
- equipment and office materials to help run an organisation for the benefit of needy people
There are also special procedures for relief from VAT on goods imported to help deal with disasters in the Customs Union. You'll need to contact us to discuss these. The relief from VAT does not apply to materials and equipment intended for rebuilding disaster areas.
Find out which countries and territories are included in the EU VAT area in VAT Notice 703
What are basic necessities?
Basic necessities are goods that will be distributed free of charge to meet the immediate needs of needy people in the Customs Union or overseas. They include:
- food
- medicines
- clothing
- blankets
- orthopaedic equipment
- crutches
You'll only get relief from VAT if the goods were donated to you in the first place. You'll get relief from duty regardless of whether you paid for them or not.
What goods that I use or sell at charity events qualify for relief from VAT?
Most goods that you use or sell at charity events qualify for relief provided that:
- the charity events are run to raise funds for the benefit of needy people
- the charity events are normally not held more than four times a year by any one organisation
- the goods were received free of charge from a person or organisation established outside the Customs Union
- there was no commercial intent on the part of the donor
What equipment and office materials qualify for relief from VAT?
Service industry machines, tools and equipment, office materials, and fixtures and fittings qualify for relief provided that you receive them:
- free of charge from a person or organisation established outside the Customs Union
- without any commercial intent on the part of the donor
- solely to help run your organisation and carry out your charitable and philanthropic aims for the benefit of needy people
Goods that aren't eligible for relief from VAT
The following goods are not eligible for relief from VAT:
- alcoholic products - including alcohol based perfume
- tobacco and tobacco products
- coffee and tea
- motor vehicles other than ambulances
- items associated solely with worship such as statues and pulpits
In addition, we may limit the quantities or kinds of goods that you can import to avoid any abuse or distortion of competition, and there are general restrictions on importing specific types of goods.
Disposing of VAT free imported goods
You do not have to pay duty or VAT when you distribute VAT free imported goods as basic necessities for needy people, or to help deal with disasters in the Customs Union.
You may lend, hire out or transfer any VAT free imported goods to another approved organisation without payment of duty and VAT as long as you notify us first.
You may also sell any VAT free imported goods at charity events without payment of duty and VAT provided that:
- the charity events are run to raise funds for the benefit of needy people
- the charity events are normally not held more than four times a year by any one organisation
- the goods were received free of charge from a person or organisation established outside the Customs Union
- there was no commercial intent on the part of the donor
You must pay duty and VAT if you dispose of the goods for any other purpose. We may visit you to confirm that you're complying with the conditions for this relief.
How to claim the VAT relief
Importing goods in accompanied baggage or freight
If you import goods valued at £600 or less in your accompanied baggage, you must declare them to customs when you arrive, and produce evidence to satisfy us that you are eligible for the relief.
If the goods you are importing are worth more than £600, or if you are importing the goods as freight, you must claim relief by completing an import declaration on a Single Administrative Document (SAD) (form C88).
You will need to enter one of the special Customs Procedure Codes (CPCs) in Box 37 of the SAD to claim the relief - see below.
Importing goods by post
If you are importing goods by post you should ask the sender to write 'CHARITY ITEMS: RELIEF CLAIMED' on the package and its accompanying international customs declaration.
If the package is not clearly marked it may not be delivered until you have paid the duty and VAT. You should pay these charges and then write to customs at the postal depot where the charges were raised. Your letter must explain what happened, how the goods will be used and enclose the document showing the charges. If customs are satisfied that you qualify for relief, they will repay the duty and VAT.
Can I claim relief after the goods have been imported and customs charges paid?
You should normally claim relief at the time you import the goods. However, subject to certain conditions, we may accept a belated claim and repay the appropriate charges.
More about repayments in VAT Notice 199
What CPCs do I need to use?
- CPC 40 00 26 - for basic necessities imported from outside the Customs Union
- CPC 40 00 27 - for goods to be used or sold at charitable events imported from outside the Customs Union
- CPC 40 00 28 - for equipment and office materials imported from outside the Customs Union
Useful links
More about importing goods free of duty and VAT in VAT Notice 317
