Short answer: importing a Japanese car into Great Britain means two charges at the border — customs duty and VAT — and, depending on the car’s age, a vehicle approval step. Since 1 February 2026 the UK–Japan trade agreement sets the duty on Japanese-origin cars at 0%, but only if you can prove the car’s origin; without proof the standard 10% applies. VAT is 20% on the customs value plus any duty. Below is a worked example with both duty scenarios side by side.
Customs duty: 0% with proof of origin, 10% without
Duty is charged on the customs value: the price you paid plus the cost of shipping and insuring the car to the UK port of entry. The standard rate for passenger cars is 10%. The UK’s Trade Tariff shows a preferential rate of 0% for goods from Japan from 1 February 2026 under the UK–Japan Comprehensive Economic Partnership Agreement (CEPA).
The catch is the origin rule. The 0% rate is for goods that originate in Japan — in practice, a car built in Japan — and you need an origin declaration to claim it. A car with a Japanese badge that was assembled in Thailand, the UK or elsewhere does not qualify. Ask your exporter whether an origin declaration is available before you buy, because it changes the bill by about a tenth of the car’s landed value.
VAT: 20% on customs value plus duty
VAT is charged at the standard 20% on the customs value plus any duty you paid. That means the duty scenario also changes the VAT: with 10% duty you pay VAT on a bigger number. Our UK landed cost calculator shows duty and VAT on separate lines so you can see exactly where the difference comes from.
Worked example: 2013 Toyota Alphard 3.5 V
| Model | Toyota Alphard 3.5 V (example) |
|---|---|
| Year | 2013 |
| Price in Japan | ¥1,280,000 |
| Exchange rate used | ¥1 = £0.0052 |
| Shipping & insurance to the UK | £1,100 |
| With proof of origin (CEPA 0%) | Without (standard 10%) | |
|---|---|---|
| Vehicle (converted) | £6,656 | £6,656 |
| Shipping & insurance | £1,100 | £1,100 |
| Customs value (CIF) | £7,756 | £7,756 |
| Customs duty | £0 (0%) | £776 (10%) |
| VAT (20% of CIF + duty) | £1,551 | £1,706 |
| Total landed cost | £9,307 | £10,238 |
Same car, same price in Japan: the origin paperwork alone is worth about £931. Change the car’s price, your shipping quote and the day’s exchange rate in the calculator to see your own numbers.
Vehicle approval and the 10-year rule
Duty and VAT get the car into the country; getting it on the road is a separate step. A car first registered more than 10 years ago may be exempt from vehicle approval, and that is why older Japanese cars are the easy path. A newer car generally needs Individual Vehicle Approval (IVA), which adds a test, a fee and sometimes modifications. The 2013 Alphard above is over 10 years old; a 2019 Toyota Aqua is not, so it would need IVA on top of the figures shown. Check the exemption rules for your exact car on GOV.UK before you commit.
What isn’t in the number
- IVA, if the car is under 10 years old.
- Customs agent and port clearance charges, and delivery within the UK.
- The DVLA first-registration process, MOT and vehicle tax.
If you bring the car in yourself rather than through an agent, tell HMRC within 14 days of its arrival.
The rates in this article were checked against the UK Trade Tariff and GOV.UK in October 2026 and change periodically. Confirm the current rate and your origin position with HMRC or a customs agent before buying.