Guidance

Pay no import duties and VAT on goods for charity

You can claim a relief to pay no Customs Duty and VAT if you're importing goods for charitable use.

• From: HM Revenue & Customs
• Published: 20 July 2020
• Last updated: 31 December 2020 — See all updates

Who can claim

You must be:

• non-profit making

• focused on the welfare of people in need

You can get relief if your organisation is:

• registered by the Charities Commission or the Office of the Scottish Charities Regulator

• a hospital

• a state organisation dedicated to welfare

• a youth organisation

• a club, home or hostel for the elderly

• an orphanage or children’s home

• set up for the relief of distress caused by particular disasters in the UK

• focused on relief of distress generally (such as the British Red Cross Society or the Salvation Army)

You cannot claim on business or commercial activity. This includes:

• retail sales and hire charges of the imported goods

• goods manufactured or produced by a third party who then charges the charity organisation

What you can claim relief on

Relief for basic necessities

You can get relief on basic necessities such as:

• food

• medicines

• clothing

• blankets

• orthopaedic equipment

• crutches

• goods to help deal with disasters in the UK

These goods must be given free of charge and meet immediate needs.

We will allow relief from Customs Duty whether or not you have purchased the goods. To qualify for relief from VAT, you must get the basic necessities free of charge.

Relief for equipment and office materials

You can get relief on machines, tools and equipment of the service industry, office materials, fixtures and fittings if you get them:

• free of charge from a person or organisation established outside the UK

• without any commercial intent on the part of the donor

• solely to help run your organisation and carry out charitable and philanthropic aims for the benefit of people in need

Relief for goods used or sold at a charity event

Goods you use or sell for fund raising at occasional charity events for the benefit of needy people. You must receive the goods:

• free of charge from a person or organisation established outside the UK

• without any commercial intent on the part of the donor

Goods you cannot claim relief on

You cannot claim relief on:

• alcoholic products (including alcohol-based perfume)

• tobacco and tobacco products

• coffee and tea

• motor vehicles other than ambulances

• items associated solely with worship such as statues and pulpits

• any goods whose importation would give rise to abuse or major distortion of competition – we may therefore limit the quantities or kinds of goods which you can import

• goods and equipment used for rebuilding disaster areas

Before you claim

You should check if your goods are strictly controlled and if you will need an import licence.

When you get the commodity code for your goods using the tariff it will tell you if you need a licence.

When to claim to relief

You should claim relief at the time of import. If you do not do this, we may accept a late claim and repay the appropriate charges subject to conditions.

How to claim

You’ll need to have the necessary supporting documentation or evidence to show you’re entitled to this relief.

Goods imported as baggage

If your goods are imported in baggage you must declare them to us when you arrive. You can do this in either the:

• Customs Red Channel

• Red Point

You should carry a letter from a responsible official of your charitable or philanthropic organisation stating that the organisation will meet the conditions of the relief.

The letter should also describe the goods, state how they will be used and whether the goods are donated or purchased.

If we are not satisfied you will have to give us financial security (normally a cash deposit or banker’s guarantee) to cover the duty and VAT. We will discharge this when you prove that the goods qualify for relief.

Where the value of the goods is over £873, you must complete a formal declaration.

Goods imported by freight

Enter one of the following Customs Procedure Codes (CPC) on your declaration:

CPC 40 00 C20

Enter this code for:

• basic necessities imported from outside the UK

• goods to be used or sold at charitable events imported from outside the UK

• equipment and office materials imported from outside the UK

CPC 49 00 C20

Enter this code for:

• basic necessities imported from the Channel Islands

• goods to be used or sold at charitable events imported from the Channel Islands

• equipment and office materials imported from the Channel Islands

Goods imported by post

Ask the sender to write ‘Charity items – relief claimed’ clearly on the package and its accompanying import declaration.

Find out more information about importing goods by post.

Getting someone else to complete your import declaration

You can use someone else to complete entries on your behalf but you must make sure you give clear written instructions for the goods that you’re claiming relief on.

After you’ve claimed

If you dispose of your goods

You must tell the National Imports Reliefs Unit if you dispose or transfer your goods to another entity.

If you do not tell us, or if you use the goods for any purpose other than for which they were imported, you may have to pay duty and VAT.

Records you must keep

You must keep:

• any National Imports Relief Unit acknowledgement letters

• receipts

• bills

• invoices

• insurance documents

You need to keep additional records if:

• you transfer goods to another approved entity – keep any official documentation detailing transfer between you and other entity

• you re-export the goods – keep the NES declaration details or export documentation providing information about the date of export

• your goods are stolen, lost or destroyed – keep police or insurance incident reports, or official documentation providing details of the date of the incident or loss

You must keep all records for a minimum of 4 years.

If you break the conditions of the relief

If you no longer meet the conditions of the relief, you must immediately notify the National Import Reliefs Unit orally, electronically, or in writing.

Provide full details of the importation and why you think the conditions of the relief have been breached.

If you want to appeal

Appeal if you disagree a decision made by HMRC.

Published 20 July 2020
Last updated 31 December 2020 + show all updates

1. 31 December 2020

   This page has been updated because the Brexit transition period has ended.

2. 20 July 2020

   First published.