Importing a car into the UK can be a way to access rare models, right-hand drive vehicles from Japan or Australia, or potentially save money on certain vehicles. But the process involves customs duty, VAT, testing, registration, and potential hidden costs that can quickly erode any savings.

1. When Importing Makes Sense

  • Rare or unavailable models — some cars were never officially sold in the UK
  • Right-hand drive markets — Japan, Australia, and South Africa produce RHD cars that can be imported directly
  • Personal import from EU — if you are relocating to the UK with your existing car
  • Classic cars — specific models may be cheaper or better preserved abroad

2. Customs Duty and VAT

OriginCustoms DutyVATApplied To
EU (with rules of origin)0%20%Vehicle value
Non-EU countries6.5%20%Value + duty + shipping
Personal import (relocating)0% (Transfer of Residence)0%Must have owned 6+ months

VAT is calculated on the total value, which includes the car's purchase price, shipping costs, insurance during transit, AND any customs duty. This compound calculation means the actual tax is higher than many importers expect.

3. The IVA Test

The Individual Vehicle Approval (IVA) test is required for vehicles that do not have European Whole Vehicle Type Approval (EWVTA). This includes most imports from Japan, the USA, and other non-EU countries.

The test checks safety and environmental standards, including lights, emissions, seat belts, and structural integrity. It costs £300–£600 depending on the vehicle type and is conducted at DVSA test stations.

Most EU vehicles are exempt as they already have type approval recognised in the UK.

4. DVLA Registration

Once the car has passed IVA (or is exempt) and customs are cleared, you register it with the DVLA using form V55/5. You will need:

  • Completed V55/5 form
  • IVA certificate (if applicable)
  • Customs clearance documentation (C88/E2)
  • Proof of purchase and shipping documents
  • Valid insurance
  • Registration fee: £55

5. Type Approval

Cars with existing EU type approval are generally accepted in the UK without IVA. However, you may need to make minor modifications:

  • Headlight adjustment (for LHD cars to prevent dazzle)
  • Speedometer in mph (or dual km/h and mph)
  • Rear fog light on the right (offside) of the vehicle

6. Insurance for Imported Cars

Insuring an imported car can be more expensive and more difficult than a standard UK car. Specialist insurers such as Adrian Flux, Keith Michaels, and Reis Motorsport handle imports. Expect to pay a premium of 10–30% above equivalent UK models due to:

  • Difficulty sourcing parts
  • Higher repair costs at specialist garages
  • Lack of UK repair network

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7. Costs Breakdown

CostNon-EU ImportEU Import
Vehicle price£20,000£20,000
Shipping£1,500£800
Customs duty (6.5%)£1,398£0
VAT (20%)£4,580£4,160
IVA test£450£0 (exempt)
DVLA registration£55£55
Modifications£200–£500£0–£200
Total landed cost£28,183–£28,483£25,015–£25,215

8. Common Pitfalls

⚠️ Watch Out For
  • Wrong emissions standard — the car may not meet UK emissions requirements
  • Missing type approval — without it, you need an IVA test which can fail
  • VIN issues — some countries use different VIN formats, causing problems with DVLA registration
  • Underestimating VAT — VAT is charged on value + duty + shipping, not just the car price
  • Conversion costs — LHD to RHD conversion can cost £2,000–£5,000+ and is not required by law

Final Thoughts

Importing a car into the UK can make sense for specific models that are rare or unavailable domestically. But for most buyers, the additional costs of duty, VAT, testing, registration, and potential modifications mean that buying a UK car is simpler and often cheaper. Do the full cost calculation before committing.

For current customs duty rates and import procedures, check gov.uk/importing-vehicles.

Frequently Asked Questions

Total costs include shipping (£500-£2,000+), customs duty (6.5% for non-EU vehicles, 0% for EU), VAT at 20% on the total value including duty and shipping, IVA test (£300-£600 for non-EU), DVLA registration (£55), and any necessary modifications. For a £20,000 car from outside the EU, expect £5,000-£8,000 in additional costs.
Under the UK-EU Trade and Cooperation Agreement, cars originating from the EU can be imported at 0% customs duty, provided they meet rules of origin requirements. You will still need to pay 20% VAT on the vehicle's value. Cars from non-EU countries attract 6.5% customs duty plus 20% VAT.
The Individual Vehicle Approval (IVA) test is required for vehicles that do not have European Whole Vehicle Type Approval. It checks that the vehicle meets UK safety and environmental standards. The test costs £300-£600 and is conducted at DVSA test stations. Most EU vehicles are exempt as they already have type approval.
Yes, left-hand drive (LHD) cars are legal in the UK. You do not need to convert them to right-hand drive. However, you may need to adjust the headlights (which dip to the left in LHD cars, causing dazzle to oncoming traffic in the UK) and may face higher insurance premiums.
From shipping to having the car registered and on the road in the UK, expect 4-8 weeks minimum. Shipping takes 1-4 weeks depending on origin. Customs clearance takes 1-5 days. IVA testing (if required) may have a wait of 2-6 weeks for an appointment. DVLA registration takes 1-2 weeks.

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