What is the difference between customs duty and VAT on imports? [2026]

1. Customs Duty:

• Market protection fee.
• Depends on type of goods (HS code) and of origin.
• For the company, this is COST (usually non-deductible, increases purchase price).
• Most goods PL-UK have a 0% rate (thanks to the TCA).

2. VAT (Value Added Tax):

• Consumption tax.
• It is always the same for a given country (standard 20% in the UK), regardless of the goods' origin.
• For the company (active taxpayer) it is NEUTRAL (you pay it but then deduct it).
• It is paid on the sum of: (Value of goods + Transport cost + Duty).

What the current official guidance means in practice

For operational work, the current procedural rules, declaration fields and relief conditions should be checked directly against the official guidance. For this topic, the core reference points are GOV.UK / HMRC, European Commission.

Operational watch-outs

Most delays come from inconsistent data between the commercial invoice, packing list, tariff classification, reference numbers and transport assumptions. Before shipment release, confirm who is responsible for clearance, whether the data set is complete and when the declaration must be filed.

Documents and data to prepare

The minimum working pack worth preparing before speaking to customs support or filing a declaration includes:

• commercial invoice with a complete goods description
• packing list with quantities, weight and package count
• HS/CN code and origin information
• EORI number and the party responsible for the declaration

Practical notes for UK-PL operators

For regular flows, keep a stable data template: goods description, HS code, origin, Incoterms, carrier details and source documents. This shortens response time and reduces border corrections.

Official sources

• UK GOV (Import VAT & PVA) — GOV.UK / HMRC, 2026-03-04
• EU Commission (Customs procedures) — European Commission, 2026-03-04
• GOV.UK: tax and duty on goods sent from abroad — GOV.UK / HMRC, 2026-03-04