Rand, pounds and the value we declare
You pay for the car in rand, but HMRC taxes it in pounds. Here is how one becomes the other, and where the exchange rate quietly changes your bill.
When a car comes into the UK, import duty and VAT are worked out from its customs value. That value is in pounds. If you bought the car in South Africa, the price on the invoice is in rand, so somewhere along the way it has to be converted.
The sums themselves are simple. What catches people out is how much the pound figure can move with the exchange rate, and how important it is that the invoice shows what was really paid.
What the customs value is made of
The customs value is the price of the car plus the cost of getting it to the UK: shipping and insurance. That total is the figure duty is charged on.
- Import duty is normally 10% of the customs value.
- VAT is 20% of the customs value plus the duty.
So VAT is charged on the duty as well. It is a small detail that adds up on a dearer car, and it is why the two lines together come to 32% of the customs value, not 30%.
Why the exchange rate matters
A car priced at a fixed number of rand can be worth noticeably more or less in pounds from one month to the next. Because duty and VAT are percentages of the pound value, they move with it.
That works both ways. A stronger pound makes the car cheaper and the tax smaller. A weaker one does the opposite. There is nothing to game here, but it is worth knowing so the final figure is not a surprise.
The tool below does not look up a rate for you. Check today's rate with your bank or transfer provider and type it in. That keeps the answer accurate: it is your number, not one we have guessed.
From rand to duty and VAT
Every figure here is one you type. Nothing is fetched or saved.
The real price on the invoice.
Example only. Check today's rate with your bank.
Your quote gives the real figure.
Enter the price and the rate you have been quoted. Without the tool: divide the rand price by the rate, add shipping and insurance, take 10% of that for duty, then 20% of the total plus duty for VAT.
The three things that can change the answer
Transfer of Residence
If you are moving your main home to the UK, have lived outside the UK for at least 12 months and have owned and used the car for at least 6 months, Transfer of Residence can mean no duty and no VAT at all. You apply to HMRC with form ToR01, ideally before the car arrives, and must not sell, lend or hire it out for 12 months after import. Our checker tells you if you are likely to qualify.
Classic cars
A car over 30 years old, original and unmodified, and of historical interest, can qualify for 0% duty and 5% VAT. HMRC's conditions apply, and a modified car usually will not qualify. There is more on our classic cars page.
Cars built in South Africa
Under the UK and SACUM Economic Partnership Agreement, a car built in South Africa may qualify for zero duty if its origin can be evidenced. That proof is the hard part, and it is not available for every car. VAT still applies either way. Tell us about the car and we will tell you if it is realistic.
Declare the price you paid
The customs value starts with the real price. Not the price someone suggested writing down, and not a round number that feels about right. Our customs team, who are in-house HMRC CDS agents, declare what your paperwork supports.
Keep three things: the invoice showing the price, date, both names and the chassis number; proof of payment, ideally a bank transfer; and any correspondence about the price. HMRC can check values, and if a figure looks wrong for the car they can ask for evidence. With the paperwork to hand, that is a short conversation.
If you bought the car some time ago, or it was a gift, tell us at the start and we will talk it through with you.
Paying the seller
How you pay matters as much as how much. A bank transfer leaves a clear record of the amount and the date, which is exactly what you want if a value is ever questioned. Large cash payments are harder to evidence.
If you are paying from a UK account, your bank or transfer provider will show you the rate and any fees before you confirm. Keep that confirmation with the invoice. It shows what the car cost you in pounds on the day.
What this tool leaves out
Duty and VAT are only part of the cost. Collection in South Africa, shipping, port charges, any work the car needs, the test and DVLA registration are all priced in your quote and itemised. For the whole picture, use the costs calculator or ask us for a quote.
Questions people ask
Which exchange rate should I use?
For planning, use the rate your bank or transfer provider is quoting you today. Rates move every day, so the pound figure will move with them. The tool on this page uses whatever rate you type in and does not fetch one.
Is duty charged on the shipping as well as the car?
Yes. The customs value is the price of the car plus the cost of shipping and insurance to the UK. Duty is normally 10% of that, and VAT is 20% of the customs value plus the duty.
Can I declare a lower price to pay less tax?
No. Declare the price you actually paid, backed by the invoice and proof of payment. HMRC can check values, and a figure that does not fit the car leads to delays, questions and possibly more to pay.
Does a car built in South Africa pay less duty?
It may. Under the UK and SACUM Economic Partnership Agreement, a car built in South Africa may qualify for zero duty if its origin can be proved. VAT still applies. We will tell you if it is realistic for your car.