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Imported Car Invoiced in Euros? What HMRC Counts as Value

Published 23 October 2026 · 6 min read

The price on a euro invoice is the starting point for the customs value of an imported car, not always the whole of it. HMRC's Method 1 adds the cost of getting the car to the UK border and any selling commission, lets you leave out buying commission and UK delivery if they are shown separately, and needs the total converted into pounds. Import VAT is then worked out on that value plus duty.

Most people read the figure on the invoice, convert it and stop. This guide sets out what GOV.UK counts, what it lets you leave out, and where the invoice has to be split to show it, with a worked example in euros.

Is your invoice in euros and your value unclear? Get a price for your import valuation.

What is the customs value of an imported car?

For most purchases it is the transaction value, called Method 1. GOV.UK defines it as the "price paid or payable by the buyer to the seller for the goods when they are sold for export to the UK", and says it is the normal method, tried first (GOV.UK, preparing to work out the customs value). It applies to the last sale for export to the UK, so a genuine sale to you.

What gets added to the invoice price?

GOV.UK's Method 1 page lists what must be included (GOV.UK, Method 1):

• the costs of transport, insurance, loading or handling connected with delivering the goods to the UK border;
• packing costs, for labour or materials;
• payments of selling commission and brokerage.

The delivery costs page adds that you include "the cost of transport", "loading and handling charges" and insurance for the goods in transit, but only up to the place of introduction (GOV.UK, delivery costs to include). A car transporter's charge from the seller to the Channel therefore counts. Whether a charge such as a warranty or admin fee on the invoice counts is not answered by the pages we read, so ask the person making your declaration.

What can you leave out?

Method 1 says these may be left out of the price:

• buying commission, paid to your agent abroad, if it is shown separately;
• UK delivery charges beyond the UK border, if shown separately;
• the cost of insurance after the UK border, if it is separately distinguished.

The words "if shown separately" matter. A single all-in transport charge from a dealer's forecourt to your door may not be easy to split afterwards, so ask the transporter for an invoice that shows the stage to the border and the stage in the UK. Marketing costs the seller bears must be included even if charged separately.

How do euros become pounds?

GOV.UK says the price of goods in a foreign currency, and any transport or insurance charged in a foreign currency, must be converted to sterling using HMRC's rules on converting foreign currency (GOV.UK, working out the VAT value). HMRC publishes monthly customs exchange rates on the UK Trade Tariff site, each with a start and an end date. For October 2026 the euro rate is 1.1665 euros per £1, for 1 to 31 October (UK Trade Tariff, monthly exchange rates). The pages we read do not say which month's rate applies to a given car, so ask the person making your declaration. A bank rate or a card rate is a different figure and does not replace HMRC's.

A worked example in euros

This is an illustration with made-up figures, using the October 2026 rate. A car is invoiced at €18,000. A transporter charges €900 to deliver it to the UK border and a further €400 for the stage inside the UK, with the two shown on separate lines. The customs value is the €18,000 price plus the €900 transport to the border, so €18,900, which at 1.1665 is about £16,202. The €400 UK stage is left out because it is shown separately. If the transporter had charged one €1,300 figure with no split, there would be nothing to separate. Import VAT is then worked out on the customs value plus customs duty and the other costs in GOV.UK's VAT page.

What does HMRC want to see?

Method 1 asks for the seller's invoice, or the document the seller uses to ask for payment, in a form where "there can be no doubt about the document's authenticity", showing that the declared value is the total paid or payable. You have to keep these documents for at least 4 years, and you must declare the customs value even if no duty or VAT is payable. If the car was not sold at a genuine price, for example a gift or a swap, Method 1 does not apply and the next methods are tried. Our guides on a gifted car and the HMRC value of an imported car with no invoice cover those cases.

Where does a valuation fit in?

We value the car; we do not make customs declarations or decide which valuation method HMRC accepts. A written valuation gives you an independent figure with the comparable cars behind it, which can help if the invoice is missing or is questioned. Whether HMRC accepts it is its decision. Customs declarations, NOVA and the DVLA paperwork are handled by Classic Import Co, a company we work with regularly, and its import tax calculator shows the tax on a car's value. Our guide to registering an imported car with the DVLA covers the step after the tax.

Frequently asked questions

Is the customs value of my car just the price on the invoice?

Not always. HMRC's Method 1 starts with the price paid or payable for the goods, then adds the cost of transport, insurance, loading and handling to the UK border, packing, and selling commission and brokerage. Buying commission paid to your own agent abroad and UK delivery charges can be left out if they are shown separately.

Which exchange rate converts euros to pounds?

GOV.UK's VAT valuation page says foreign currency amounts must be converted to sterling under HMRC's rules on converting foreign currency. HMRC publishes monthly customs exchange rates on the UK Trade Tariff site, each with start and end dates. Ask the person making your declaration which month's rate applies to your import.

Does the delivery cost from the dealer to my home count?

The part up to the UK border does. GOV.UK says you only need to include transport costs up to the place of introduction, and that UK transport costs can be deducted if shown separately from the main freight charge. Ask the transporter for an invoice that shows the two parts.

What if the invoice looks too low or does not match the car?

HMRC expects an invoice whose authenticity is beyond doubt and which shows the total paid or payable. If the price is not a genuine sale price, HMRC has other valuation methods, and Method 6 is the fall-back that asks for evidence. Our guide to the HMRC value of an imported car with no invoice covers that route.

Sources: GOV.UK, preparing to work out the customs value; GOV.UK, Method 1; GOV.UK, delivery costs to include; GOV.UK, working out the VAT value; UK Trade Tariff, monthly exchange rates. Checked 23 October 2026.