How much tax to import a car from Japan?

How Much Tax to Import a Car from Japan?

Importing a car from Japan involves paying import duties and taxes. These charges vary depending on the value of the vehicle and its engine size.

Import VAT

The standard import VAT rate in the United Kingdom is 20%. This tax is applied to the value of the car, including the cost of shipping and insurance.

Import Duty

A 10% import duty is also applicable on cars imported from Japan. This duty is calculated on the value of the car, excluding shipping and insurance costs.

Additional Taxes

In addition to import VAT and duty, you may also be required to pay the following taxes:

• Vehicle Excise Duty (VED): This tax is based on the vehicle’s CO2 emissions.
• First Registration Tax (FRT): This tax is a one-time payment made when the vehicle is first registered in the UK.

Calculating Import Taxes

To calculate the total import taxes you will need to pay, follow these steps:

1. Determine the value of the car, including shipping and insurance costs.
2. Calculate the import VAT by multiplying the value of the car by 20%.
3. Calculate the import duty by multiplying the value of the car by 10%.
4. Add the import VAT and import duty together to get the total import taxes.

Example

Let’s say you are importing a car from Japan with a value of £10,000, including shipping and insurance costs.

• Import VAT: £10,000 x 20% = £2,000
• Import duty: £10,000 x 10% = £1,000
• Total import taxes: £2,000 + £1,000 = £3,000

Declaration and Payment

Once you have calculated the import taxes, you need to declare your imported vehicle to Her Majesty’s Revenue and Customs (HMRC). HMRC will provide you with a detailed breakdown of the exact amount due for payment. You can pay the import taxes online or by post.

It is important to note that the import taxes and duties are subject to change. Always check with HMRC for the latest information before importing a car from Japan.