Vat Value Adjustment (VVA) - Updated HMRC Guidance

HMRC has updated its guidance on VVA (VAT Value Adjustment) with clarification on when to use the incidental expense methods and revised nationally agreed rates for calculating UK incidental expenses when establishing the import VAT value.

The revised nationally agreed rates should now be used where applicable when calculating VVA for CDS import declarations.

Updated nationally agreed rates

Where Method 2 is applicable, agents should now use the following rates with immediate effect:

Group A - Airfreight: £0.55 per chargeable kg, minimum £135

Group B - Surface freight (groupage/consolidation): £125 per gross weight tonne + £110 per consignment

Group C - Surface freight (full load): £760 per full-load consignment

Please click here to view the HMRC latest guidance.