IMPS05200 - Valuation for import VAT: exceptions to the normal rules: permanent imports: works of art, antiques and collectors’ items

Imports of works of art, antiques and collectors’ items are taxed on a reduced value at importation, giving an effective VAT rate of 5 per cent, see How to value goods for import VAT.

Law

The Vat Act 1994, Section 21 gives the general valuation rules. Subsection 4 sets out the method for arriving at a reduced valuation, to which the 20 per cent VAT rate is applied, to produce an effective import VAT rate of 5 per cent. Sub-sections 5 to 6D contain definitions of the goods that qualify to be taxed on a reduced value at importation, giving an effective VAT rate of 5 per cent.

Works of art

Only those works of art defined in VATA S21 are eligible for the reduced valuation at importation. The definition is also in How to value goods for import VAT.

Antiques

For customs duty purposes goods that can be entered to chapter headings 97.01 to 97.05 should not be entered as antiques under chapter heading 97.06.

Collectors items

Definitions and examples of items which qualify for the effective reduced VAT rate, are given above and in How to value goods for import VAT.

Classification to most categories causes few problems as the distinctions are clearly defined. However, the concept of “historical interest” is more subjective and consequently causes the most problems. Any questions regarding the classification of goods should be referred to ECSM - Tariff Classification.

It should be noted some goods are eligible for the second-hand margin scheme. Further information on the second-hand margin scheme is given in both The Margin Schemes (VATMARG) and guidance (VAT margin schemes).

Customs procedure codes (CPCs)

Eligible goods should be entered to CDS using the appropriate procedure code under DE 1/10 and additional DE 1/11

A declaration by the importer/agent claiming the goods qualify for a reduced value for import VAT and are eligible for the second-hand margin scheme, where appropriate.

For temporarily imported works of art, collectors items and antiques as defined in Notice 3001: The customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (SI 2018/1249), imported for the purposes of exhibition with a view to possible sale, refer to the Special Procedures guidance. Full security for VAT will be required. It may be possible for traders who meet the criteria to import goods as defined in Notice 3001: The customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (SI 2018/1249) for the purposes of exhibition with a view to possible sale, to import the goods under the Temporary Admission procedure. For further details refer to the Temporary Admission guidance.