Goods originally exported for processing: VAT relief

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.

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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.

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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

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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

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