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The UK legislation on valuation makes specific reference to the inclusion of all subsidies taxes, duties, levies and charges in the context of valuing imported goods¹.

Archived Directive 2006/112/EC (that is, the VAT Directive as it stood at Brexit IP completion day², from which the UK provisions were derived) provides that the 'taxable amount' (ie value) in connection with a supply of goods or services includes taxes, duties, levies and charges, excluding the VAT itself³. It does not include:

'the amounts received by a taxable person from the customer as repayment of expenditure incurred in the name and on behalf of the customer and which are entered in his books in a suspense account'⁴.

In De Danske Bilimportører⁵, the question of Danish car registration duty was considered. The duty was paid by the appellant and recharged to his customer. Since the event giving rise to the liability for duty was the registration, rather than the supply, of the car, the Court held