Value Added Tax Act 1994 section 37

Relief from VAT on importation of goods

Section 37 deals with the circumstances in which relief from VAT may be granted on goods imported into the United Kingdom, including exemptions, Treasury orders for relief, treatment of transfers between importers, and provisions for remitting or repaying VAT on re-exported goods.

• No VAT is chargeable on imports that fall within the scope of section 7(5B), which covers certain categories of goods movement.
• The Treasury may make orders granting full or partial relief from import VAT, subject to conditions that may restrict how the goods are disposed of or dealt with.
• Where goods originally imported with VAT relief are transferred to another person, HMRC can direct that the transfer be treated as an export by the original importer and a fresh import by the new owner, preserving the relief entitlement.
• HMRC may remit or repay import VAT on goods that have previously been exported from the United Kingdom, or on goods that have been or will be re-exported, having regard to the VAT that would be charged on similar goods supplied domestically.