VAT on importing a car from the UK — who pays, when, and how can a company reclaim it?

Who pays VAT when importing a car from the UK to Poland?

The obligation to pay import VAT rests on the importer — i.e. the entity that files the customs declaration in Poland. When importing a car from the UK to Poland, Polish VAT legislation applies (the Act of 11 March 2004 on Goods and Services Tax, Journal of Laws 2004 No. 54 item 535, as amended). The VAT tax base is the customs value of the goods (CIF — cost, insurance, freight) plus any applicable duty. The VAT rate for passenger cars is 23% (Article 41(1) of the VAT Act). Separate rules apply for vehicles classified as used goods or as Transfer of Residence goods — see the relevant article on our website.

Business importer — general rules

A Polish company importing a car from the UK is a taxable person for the purposes of the import of goods (Article 17(1)(1) of the Polish VAT Act). It is required to pay VAT calculated on the customs value plus duty. The duty rate on passenger cars (HS 8703) from the UK is in principle 0%, provided the rules of origin requirements of the EU–UK Trade and Cooperation Agreement (TCA, OJ EU L 149 of 30.4.2021) are satisfied. If the vehicle does not meet the rules of origin (e.g. it is a Japanese car merely re-registered in the UK), the MFN tariff rate for the relevant HS code applies — check on TARIC or the HMRC Trade Tariff. The VAT calculated in the PZC document is reported by the importer in the VAT-7 return for the period in which the PZC was received.

Legal basis: Article 29a(17) of the Polish VAT Act (VAT base on import) and the Minister of Finance Regulation of 23 December 2013 on tax returns (as amended).

Private individual — VAT with no right to reclaim

A private individual not in business who imports a car from the UK pays 23% VAT without any possibility of reclaiming it. The VAT is calculated by the customs authority on the basis of the vehicle value (CIF) and must be paid before the vehicle is released from customs control. The PZC document confirms payment of VAT and duty. The only scenario in which import VAT can be avoided is where the conditions for Transfer of Residence (ToR) relief are met — but that is a separate procedure requiring documentation of relocation.

There is no mechanism for private individuals equivalent to PVA (Postponed VAT Accounting) available to UK VAT-registered importers. PVA is regulated by HMRC and applies exclusively to entities registered for VAT in the UK — which is not the case for a private Polish importer.

PVA (Postponed VAT Accounting) — what it is and does it apply to a Polish importer?

Postponed VAT Accounting (PVA) is a UK mechanism allowing importers registered for VAT in the UK to defer accounting for UK import VAT to their VAT return instead of paying it at the UK border. It is regulated by HMRC — see: GOV.UK — Postponed VAT Accounting.

For a Polish company importing a car into Poland (not into the UK), PVA does not apply. The Polish importer pays Polish import VAT under Polish law, and the reclaim is made through the Polish VAT-7 return. PVA is only relevant when a Polish company is simultaneously registered for VAT in the UK and is importing into the UK — a rare scenario for brokers operating on both sides of the Channel. If in doubt, consult a customs broker and a tax adviser.

How can a company reclaim import VAT on a car?

A Polish company that is an active VAT taxpayer can reclaim the VAT paid on importing a car — but subject to conditions under the VAT Act. The key document entitling the company to reclaim is the PZC (Poświadczenie Zgłoszenia Celnego — Customs Declaration Certificate), issued by the customs authority after clearance is complete. The reclaim is entered in the VAT-7 return for the month in which the PZC was received or the following month. An important restriction: for passenger cars (HS 8703) used for mixed purposes (private and business), the VAT reclaim is limited to 50% (Article 86a of the Polish VAT Act). A full reclaim is available only for cars used exclusively for taxable business activities — in that case a vehicle mileage log must be maintained and form VAT-26 submitted to the tax office.

PZC document — the basis for import VAT reclaim

The PZC (Poświadczenie Zgłoszenia Celnego — formerly known as SAD) is issued by the Regional Revenue Administration after the customs declaration has been accepted and duties paid. The PZC contains: the customs value of the goods, the duty rate applied, the VAT calculation base and the VAT amount. This document replaces a VAT invoice as proof of import tax payment and is the basis for entry in the VAT purchase ledger. Retain the PZC for five years — it is a required accounting document.

Legal basis: Article 86(10b)(1) of the Polish VAT Act — import VAT reclaim in the period in which the tax liability on import arose, provided the amount of tax due is reflected in the return. For imports from the UK the customs broker files the declaration in the Polish PUESC system (AIS/CELINA).

The 50% restriction for passenger cars

Passenger cars are subject to specific VAT reclaim rules (Article 86a of the Polish VAT Act). If the vehicle is used for mixed purposes — business and private — the VAT reclaim (both on purchase and on import) is limited to 50%. To reclaim 100% VAT, the company must: (1) use the vehicle exclusively for taxable business activities; (2) maintain a detailed vehicle mileage log; (3) submit form VAT-26 to the tax office within seven days of the date the first expenditure on the vehicle is incurred.

For goods vehicles (HS 8704) and special-purpose vehicles, the full 100% import VAT reclaim applies under general rules, provided the vehicle meets the definition of a motor vehicle with a maximum permissible mass above 3.5 tonnes or is a special-purpose vehicle under road traffic regulations. Verify the vehicle classification in the Polish registration document.

Reclaim deadline and the VAT-7 return

The import VAT reclaim is reported in the VAT-7 (monthly) or VAT-7K (quarterly) return for the period in which the tax liability on import arose — in principle, the date on which the goods were released to free circulation, i.e. the date the customs declaration was accepted by the authority. If the company does not reclaim VAT in the same month, it can do so in the return for either of the next two months (three tax periods in total). After that deadline, a corrected return is required.

A company regularly importing cars (e.g. a used car dealer) should ensure that the customs broker delivers the PZC electronically immediately after clearance — a delayed PZC can push back the reclaim deadline and cause cash-flow problems. Easy Clearance delivers the PZC electronically on the day clearance is completed.

Customs clearance costs for a UK car — price range

The cost of customs clearance for a car imported from the UK to Poland includes: the customs broker's fee, any applicable duty (if the vehicle does not meet TCA rules of origin), 23% VAT (payable on import or offset through the VAT return), and vehicle registration costs in Poland. Below are Easy Clearance's price ranges for the customs clearance service alone. Remember that duty and VAT are separate public law charges — the customs broker only charges for the clearance service.

Easy Clearance price range — import clearance

Import clearance cost for a car from the UK: from £45 to £150. Prices quoted are indicative ranges — exact quote after document review.

The price is influenced by: number of commodity lines, any need to correct the customs value, presence of preferential origin documents (EUR.1 or statement of origin), and any special permits required for classic or electric vehicles. Contact us via WhatsApp (+44 7404 091503) or by phone: +44 7404 091503 — we will provide a quote within minutes of receiving the purchase invoice and vehicle documents.

Documents required for car customs clearance

The following are needed for import clearance of a UK car: (1) purchase invoice from the UK seller (including seller and buyer details, VIN number, value in GBP or EUR); (2) V5C (UK vehicle registration certificate — log book) or other proof of title; (3) importer's EORI number (Polish company or sole trader); (4) customs power of attorney for Easy Clearance; (5) optionally, proof of preferential origin (statement of origin on the invoice or EUR.1 certificate) if the seller confirms the vehicle's UK origin, entitling it to 0% duty under the TCA.

For electric vehicles, an additional certificate of battery specifications may be required — check the Polish type-approval requirements for EVs imported from outside the EU.

Prices quoted are indicative ranges — exact quote after document review.

What the current rules say

Importing a car from the UK to Poland requires customs clearance and payment of 23% VAT on the CIF value plus duty. A Polish company that is an active VAT taxpayer can reclaim import VAT on the basis of the PZC document, with a 50% limitation for passenger cars used for mixed purposes. PVA (Postponed VAT Accounting) is a UK mechanism — it does not apply to Polish importers bringing cars to Poland. Prices quoted are indicative ranges — exact quote after document review.

FAQ — frequently asked questions

Who pays VAT when importing a car from the UK?

The obligation to pay import VAT (23%) rests on the importer — the entity that files the customs declaration in Poland. The tax base is the CIF value (cost + insurance + freight) plus duty. Both companies and private individuals pay VAT — the difference is that a VAT-registered company can reclaim it, whereas a private individual cannot.

Can a company reclaim VAT on importing a car from the UK?

Yes, a Polish company that is an active VAT taxpayer can reclaim import VAT on the basis of the PZC document. For passenger cars used for mixed purposes, the reclaim is limited to 50% (Article 86a of the Polish VAT Act). A full 100% reclaim applies only for cars used exclusively for taxable business activities — in that case form VAT-26 must be submitted to the tax office.

What is PVA and does it apply to a Polish company?

PVA (Postponed VAT Accounting) is a UK mechanism for importers registered for VAT in the UK — it allows them to defer accounting for UK import VAT to the VAT return rather than paying it at the UK border. For a Polish company importing a car into Poland, PVA does not apply — Polish VAT rules apply and the reclaim is made through the Polish VAT-7 return.

What documents are required for customs clearance of a UK car?

Required documents: purchase invoice (including VIN number), V5C (UK vehicle registration certificate), importer's EORI number, customs power of attorney, and optionally a proof of preferential origin (statement of origin on the invoice or EUR.1 certificate) confirming UK origin of the vehicle and entitling it to 0% duty under the TCA.

How much does customs clearance for a UK car cost?

Import clearance for a car from the UK: from £45 to £150 (customs broker's fee). Prices quoted are indicative ranges — exact quote after document review. Duty and VAT are separate public law charges. Send us a message on WhatsApp +44 7404 091503 — we will provide a quote after receiving the invoice.

Is the duty on a car from the UK 0%?

In principle yes — the duty rate for passenger cars (HS 8703) from the UK is 0% under the EU–UK Trade and Cooperation Agreement (TCA), provided the vehicle meets the rules of origin (manufactured in the UK or EU with sufficient value content). If the vehicle does not meet the rules of origin (e.g. it is a Japanese car merely registered in the UK), the full MFN tariff rate applies. Check the origin evidence before buying.

Official sources

• GOV.UK — Postponed VAT Accounting for import VAT on VAT return — HMRC
• UK Trade Tariff — Heading 8703 (motor cars and passenger vehicles) — HMRC
• podatki.gov.pl — Import of goods — VAT — Polish Ministry of Finance
• PUESC — Polish Electronic Customs and Tax Services Platform — PUESC