Value Added Tax Act 1994 section 27

Goods imported for private purposes

Section 27 deals with the VAT treatment of goods imported by a taxable person where those goods belong wholly or partly to another person and are intended for private (non-business) use.

• VAT paid on imported goods intended for private use cannot be treated as deductible input tax under section 25, even if the importer is a taxable person
• The importer may instead make a separate claim to HMRC for repayment of the import VAT to avoid a double charge
• HMRC will only allow such a claim to the extent necessary to prevent VAT being effectively charged twice on the same goods
• "Private purposes" means any purposes that are not those of a business carried on by the person concerned