Section 27 | Value of imported goods.

(1)Section 21 of the Value Added Tax Act 1994 (value of imported goods) shall be amended as follows.

(2)In subsection (2) of that section at the end of paragraph (a) the word “and” shall be omitted.

(3)For paragraph (b) of that subsection there shall be substituted—

(b)all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods’ first destination in the United Kingdom; and

(c)if at the time of the importation of the goods from a place outside the member States a further destination for the goods is known, and that destination is within the United Kingdom or another member State, all such incidental expenses in so far as they result from the transport of the goods to that other destination;

(4)This section shall have effect in relation to goods imported on or after 1st January 1996.