Inward Processing Relief: Who Qualifies and What You Get
Learn how businesses can suspend import duty and VAT when bringing goods into the UK for processing before they are sent abroad.
Inward Processing Relief is a scheme that allows businesses to bring goods into the UK for processing or repair without paying certain taxes upfront.
Who it's for
This scheme is designed for businesses that import goods into the UK specifically to process them—such as through manufacturing or repair—and then re-export those goods to a different country.
What you get
You can receive a suspension of import duty and VAT. This means you do not have to pay these costs at the point of entry, provided the goods are eventually sent out of the country.
What it costs you
There is no direct fee to access this relief, but it does require strict record-keeping. You must maintain detailed documentation of all goods brought in and out to prove you are following the rules.
The catch to know
The relief only applies if the finished goods leave the country. If you decide to sell the processed goods within the UK instead of re-exporting them, you will be required to pay the duty.
How to apply
- Determine if your goods meet the specific processing requirements.
- Set up a system for detailed record-keeping to track all movements.
- Consult the official guidance on the HMRC website to manage your relief.