UK Import VAT: New VVA Rates

Oct 26

2 min read

🔓 HMRC has increased Method 2 import VAT adjustment rates by up to 39%. Find out what importers and customs agents need to change.

What Has Changed?

On 21 October 2026, HMRC updated its guidance on the nationally agreed rates used to estimate incidental expenses when calculating import VAT under Method 2.

The revised VAT Value Adjustment (VVA) rates represent increases of approximately 35%–39%, making it important for importers and customs agents to review their existing procedures.

What Do the New Rates Mean for Importers?

The updated rates cover three categories: airfreight, groupage and consolidation, and full-load consignments.

These rates help eligible businesses estimate certain incidental expenses included in the import VAT calculation. Continuing to use outdated figures could result in incorrect declarations and potential financial consequences.

The changes are particularly relevant to importers, customs brokers, freight forwarders and finance teams that rely on Method 2.

What Should Your Business Do?

Importers should establish whether they use Method 2, check their current calculation procedures and confirm that their customs agents and service providers are aware of the changes.

The correct approach depends on the type of consignment, the applicable valuation method and the circumstances of the import.

For businesses that cannot recover all their import VAT, incorrect calculations could have a direct financial impact.

Need Practical Guidance on Implementing the New Rates?

Knowing that the rates have changed is only the first step. Businesses also need to understand how to apply the revised figures correctly and update their customs procedures.

🔒 PRO EXCLUSIVE: UK Import VAT - Implementing the New VVA Rates

Our practical PRO guide includes a revised rate reference table, calculation examples, eligibility considerations and an implementation checklist to help your team review its processes and strengthen compliance.

Access the PRO Implementation Guide

Author

Ann Karen | Head of Growth

Updated: October 2026

Disclaimer:

This article is provided for general informational purposes only and does not constitute legal, customs or tax advice. Businesses should seek professional advice based on their individual trading arrangements and compliance obligations.