In this section:
- Charging VAT on exports, despatches and movements of goods abroad
- Charging VAT on supplies of services abroad
- Paying and reclaiming VAT on imports and purchases from abroad
- Reduce the financial guarantees you provide for import duty and VAT
- Speed up the delivery of your imported goods into the UK
- Import VAT relief for goods supplied onward to another EU country
- Import VAT relief for goods originally exported for processing
- Foreign currency transactions and VAT
- Verify an EU VAT number on the European Commission website
- Check EU country VAT codes on the European Commission website
Import VAT relief for goods originally exported for processing
Generally speaking, VAT is payable on all goods and services imported from outside the European Union (EU) at the same rate that would apply to the goods or services if supplied in the UK. However, in some circumstances you may be able to obtain relief from import VAT.
If you had specifically exported the goods so they could be processed, repaired, made up or reworked, then when you come to re-import the processed goods, you may be able to use Outward Processing Relief (OPR) to obtain relief from customs duties - and possibly reduce the VAT chargeable.
You need to be authorised to use OPR.
This guide explains what OPR is, how it works, and tells you where you can find the detailed information you need to apply for and operate OPR.
On this page:
OPR
Outward processing relief (OPR) allows you to obtain relief from customs duties when re-importing EU goods previously exported from the EU for processing or repair.
You need to be authorised to use OPR. There are six different kinds of authorisation, and the authorisation you need depends on the type of goods, the type of process, and the member state from which you export them.
Conditions for claiming OPR
To reduce the amount of import VAT chargeable on such goods, the following conditions have to be met:
- the goods must have been exported temporarily from the EU
- when the goods were exported from the EU, it must have been clear that they were going to be re-imported after processing or repair
- the goods must have been re-imported after being processed, repaired, made up or reworked outside the EU
- ownership of the goods must not have been transferred at any time
- you must declare that all these conditions have been met when you re-import the goods
Calculating the import VAT
If all the conditions for claiming OPR have been met, you can calculate import VAT on the following value:
- the price charged for the process, repair or other service, including any charge for parts and materials
- any freight and other charges, not including insurance, paid for transporting the goods to the place of process or repair
- any customs or excise duties or other import charges payable in the UK
More about how to apply for and claim outward processing relief in VAT Notice 235
