Customs is the stage people picture as a man in a booth deciding whether your car can come in. In reality it is a declaration made online, and the decision rests on a handful of facts about the car: what it is, where it came from and what it cost. Get those right and clearance is a routine step.
We are HMRC CDS authorised agents with our own in-house customs staff, so we make the entry ourselves. Here is what that involves, what HMRC needs, and when the tax is paid.
- Who declares
- A customs agent, for a shipped car
- Tax due
- At the border
- EU cars
- Usually cleared same day
- Shipped cars
- Usually a few days at port
What an import declaration is
Every car coming into the UK to stay needs an import declaration. It tells HMRC what the car is, its value, where it was bought and how it arrived. From that, HMRC works out the duty and VAT.
Declarations are made through HMRC's Customs Declaration Service, known as CDS. Once accepted, the declaration has a Movement Reference Number, or MRN. That number matters later, because it is part of the evidence for the NOVA notification that comes next.
Who makes it
For a car that is shipped to the UK, GOV.UK says you need a shipping company or customs agent to make the import declaration for you. It can be made before the car arrives or at the border.
It is a little different if you drive a car over yourself on a ferry or through the Channel Tunnel. In that case GOV.UK says you tell HMRC within 14 days, and a customs agent makes a declaration only if HMRC says VAT and duty are due.
Because our customs team is in-house, there is no chain of agents passing questions between them. The person making the entry is the person who answers HMRC if anything needs checking.
What HMRC needs
Most of the declaration is built from the paperwork you already have. For a straightforward purchase, that means:
- The purchase invoice or bill of sale, showing what you paid
- A recent valuation, if the invoice is more than 3 months old
- The car's registration document, with a VIN that matches the car
- Your ID, usually the photo page of your passport
Some situations need more:
- Moving to the UK: your HMRC Transfer of Residence approval, applied for before the car ships
- A car that used to be UK-registered: your UK purchase invoice and a copy of the old V5C
If the invoice is in another currency, it is converted at HMRC's exchange rate. Our full list is in the paperwork you need to ship a car.
How the tax is worked out
GOV.UK says VAT is charged on the total cost of the vehicle plus any accessories bought with it, delivery and extra charges, and customs duty. In plain terms, the tax is worked out on what you paid plus the cost of getting it here, and the VAT is charged on top of any duty.
| Feature | Duty | VAT |
|---|---|---|
| Car bought in the EU | None, if built in the EU or UK | 20% |
| Car bought outside the EU | 10% | 20% |
| Over 30 years old | None | 5% |
| Transfer of Residence | None | None, with HMRC approval |
| Returning UK car | May be none | May be none, with UK invoice and old V5C |
Our import tax calculator runs the numbers for your car, and six worked examples show the sums line by line.
Who pays, and when
The importer pays the duty and VAT. For a shipped car, GOV.UK says the shipping company or customs agent usually pays HMRC at the border, which is how it works with us. You pay the tax as part of your import, and we settle it with HMRC when we make the entry.
The timing is firm at one end. GOV.UK states that any VAT and duty must be paid before the car can be registered. In practice, the car is not released from customs until the entry is accepted and the tax is paid, so the tax is due when the car lands, not when it gets its plates.
VAT-registered businesses work a little differently. GOV.UK says they account for the import VAT on their next VAT Return, or reclaim it there.
No surprises at the border. We work out the tax from your paperwork before the car arrives, and your quote shows it. You pay the correct amount, with no unexpected fees at customs.
Claiming relief
Relief, such as Transfer of Residence or the relief for returning UK cars, is claimed on the declaration itself. GOV.UK says your shipper or agent can apply for it when they make the entry, which is why we need the supporting paperwork before the car lands.
The one that catches people out is Transfer of Residence. It needs HMRC approval in place before the car is cleared. If the approval is not there when the car arrives, duty and VAT are due. Our guide to Transfer of Residence explains the 12-month and 6-month rules.
From declaration to release
-
Before it ships
Paperwork to us
Invoice, registration document, ID, and any Transfer of Residence approval. We check them against each other and the car.
-
Before arrival or at the border
Import declaration
We make the entry through CDS as HMRC authorised agents, and HMRC calculates the duty and VAT.
-
On arrival
Tax paid and car released
EU cars can usually be cleared the same day. Shipped cars are usually a few days at port, and we aim to clear them before any charges are due.
-
Within 14 days
NOVA
We tell HMRC the car has arrived, using the MRN from the declaration. The DVLA will not register the car without it.
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Next
Testing and registration
Any UK changes, a test on our own site, then DVLA registration within 10 working days of a passed test.
Customs, NOVA and the DVLA
Clearing customs is not the last word from HMRC. NOVA is a separate notification that tells HMRC the car is here to stay, and GOV.UK gives 14 days from arrival to make it. Our guide to NOVA covers the detail.
The two are linked to registration. The DVLA will not register the car until NOVA has been processed, and NOVA is where HMRC confirms the tax has been paid. So a clean customs entry is the first step towards your registration number.
When it goes wrong
Most problems at customs are paperwork problems: an invoice that does not match the declared value, a VIN that differs between the documents and the car, or relief claimed without the approval behind it. Each one stops the entry until it is put right, and the car waits at the port in the meantime.
We cover the causes, the costs and what to do about them in customs delays when importing a car. The short version is to send your documents before the car is collected, not after it has sailed.
Questions people ask
Who makes the customs declaration for an imported car?
For a shipped car, GOV.UK says a shipping company or customs agent makes it for you. We are HMRC CDS authorised agents with in-house customs staff, so we make the entry ourselves.
When do I pay import VAT and duty on a car?
For a shipped car, the tax is paid at the border when the entry is made, usually by the agent on your behalf. GOV.UK also says it must be paid before the car can be registered.
What is the tax worked out on?
On the cost of the car plus delivery and extra charges, with VAT charged on top of any duty. Most cars from outside the EU pay 10% duty and 20% VAT.
How long does customs clearance take?
Cars from the EU can usually be cleared the same day. Shipped cars are usually a few days at port, and complete, matching paperwork is what keeps it short.
Is customs clearance the same as NOVA?
No. Customs clearance is the import declaration and the tax. NOVA is a separate notification to HMRC, made within 14 days of arrival, and the DVLA needs it before it will register the car.
Want to know what your car will cost to clear? Tell us about it on the quote form and we will include the tax in your price.
