VAT relief for commercial samples

There are specific VAT rules that apply to commercial samples, which can provide businesses with potential relief from Customs Duty and VAT when importing such samples into the UK. This relief is available only if HMRC is satisfied that the goods meet certain conditions.

To qualify for relief, the commercial samples must meet the following criteria:

• They must be used exclusively as commercial samples and clearly represent the goods they are meant to showcase
• The samples must be properly prepared and presented in an acceptable manner before being imported
• The samples must be imported with the sole intention of securing future orders for the goods they represent.

However, businesses cannot claim relief in the following circumstances:

• If the goods are small in quantity and HMRC suspects they have been misrepresented as commercial samples
• If the goods are imported without the clear intention of obtaining future orders
• If the goods are not clearly identified as commercial samples
• If undeclared items are imported that could later be used to make samples
• If the goods can serve purposes beyond being used as commercial samples
• Goods imported under the Low Value Bulking Import procedures cannot be considered commercial samples
• Promotional “give-away” goods intended solely to promote trade do not qualify.

If you're a small business and need accounting or tax advice and support, please give our friendly and knowledgeable team a call on 01380 723692 or email us here.