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How much tax do you pay on imported cars UK?

Understanding UK car import taxes If you're importing a vehicle from the USA, you should expect a 10% customs duty and a 20% VAT. For cars coming from the EU, generally, a 10% customs duty and 20% VAT are charged if there isn't a zero-tariff trade agreement with the EU at the time.



Importing a car to the UK in 2026 involves two primary taxes: Customs Duty and Value Added Tax (VAT). For standard modern cars imported from outside the UK (including the EU, unless you qualify for specific trade exemptions), you typically pay 10% Customs Duty and 20% VAT. The VAT is calculated on the "landed value," which includes the purchase price of the car plus the shipping and insurance costs. If you are a resident moving to the UK and have owned the vehicle for more than 6 months while living abroad for more than 12 months, you may qualify for the Transfer of Residence (ToR) relief, which can reduce these taxes to zero. For "classic" cars over 30 years old in original condition, a reduced rate of 0% duty and only 5% VAT often applies under the BTI Scheme. It is vital to use the "Notification of Vehicle Arrivals" (NOVA) system within 14 days of the car's arrival to avoid heavy penalties and ensure the vehicle can be legally registered with the DVLA.

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If you want to save money when buying a car, it is sometimes worth taking a look across the border. In neighboring countries, new cars can be up to a third cheaper. However, you may not always be looking for a new model. All kinds of used cars are regularly imported from all over the world.

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Value-added tax (VAT) The standard VAT rate of 20% applies to most goods and services, apart from domestic fuel and power and certain other reduced-rate supplies, which are subject to VAT at 5%.

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