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What is the significance of customs declarations for VAT?

Customs declarations are significant to VAT because the value of imported goods for VAT purposes is tied to their customs value (plus certain other elements, as explained in the Imports ― meaning of import and VAT on imports guidance note). The liability for import VAT is therefore calculated on the basis of entries that are made in the customs declaration.

HMRC has published guidance on how to use the customs value to calculate the VAT value of imported goods.

In the context of postponed accounting for imports VAT (see the Imports ― postponed accounting for import VAT guidance note), it is entries on a customs