Value Added Tax Act 1994 section 21

Value of imported goods

Section 21 sets out how to determine the value of goods imported into the United Kingdom for VAT purposes, including special valuation rules for works of art, antiques and collector's pieces.

• The value of imported goods is their customs value as determined under the Taxation (Cross-border Trade) Act 2018, plus any taxes, duties, charges and incidental expenses (such as commission, packing, transport and insurance) up to the goods' first destination in the UK — but excluding VAT itself.
• Works of art, antiques over 100 years old, and collections or collector's pieces of specialist interest benefit from a reduced valuation of 25 per cent of what their value would otherwise be, though this relief can be adjusted by the Treasury if the VAT rate changes.
• Where qualifying goods are sold at auction while under temporary admission and the buyer's arrangements lead to their importation, any auctioneer's commission or premium is excluded from the goods' value for VAT purposes.
• A prompt payment discount reduces the value of imported goods for VAT purposes, provided the contract terms allow such a discount, do not permit payment by instalments, and the discount is actually taken.