Japanese import cars: costs, duty, IVA and resale for dealers

Japanese import cars explained for UK and Irish dealers: 0% or 10% duty, VAT, NOVA, when IVA is needed, registration, auction sheets and how imports resell.

26 October 2026 · 8 min read

Japanese import cars are vehicles bought used in Japan – usually at Japanese dealer auctions – and shipped to the UK or Ireland, which also drive on the left, so the cars are already right-hand drive. For a UK import you pay 20% VAT, plus customs duty of 0% if the car qualifies as Japanese-made under the UK-Japan trade agreement or 10% if it doesn't. You then notify HMRC through NOVA within 14 days, get vehicle approval (cars over 10 years old are exempt) and register the car with DVLA. Japanese imports are often in very good condition for their age, but they cost more to insure, parts can be hard to find for Japan-only models, and they resell to a smaller pool of buyers than UK-supplied cars.

Why Japanese import cars are popular

Japan has a large stock of low-mileage used cars and strict periodic inspections, which make running an older car there relatively expensive. Many Japanese owners replace cars early, so plenty of tidy, rust-light cars with modest mileage reach the auctions. For UK and Irish buyers the attractions are:

right-hand drive – no conversion of headlights or controls, unlike left-hand drive imports from the continent,
models never sold in Europe – Japanese-market MPVs, kei cars, sports cars and special versions,
condition – salt is used far less on many Japanese roads, so underbodies are often cleaner,
transparent grading – auction houses publish an inspection sheet with a condition grade and a damage map.

The downsides matter just as much for a dealer: spare parts and service information for Japan-only versions, higher insurance premiums for some models, radios and navigation set up for Japanese frequencies and language, and a buyer base that is narrower than for mainstream UK cars.

How much it costs to import a car from Japan to the UK

The cost of a Japanese import is far more than the auction hammer price. A realistic budget includes:

Cost item	What to expect
Purchase price	auction hammer price plus the exporter's buying fee
Japanese export costs	inland transport to port, export paperwork, deregistration
Shipping	roll-on/roll-off or container freight and marine insurance
Customs duty	0% with valid proof of Japanese origin, otherwise 10%
Import VAT	20% of car + shipping + insurance + duty
UK port and agent costs	customs clearance, port handling, transport from port
Approval and modifications	IVA for cars under 10 years old, plus any changes needed to pass
Registration	DVLA first registration fee, number plates, vehicle tax

VAT is charged on the total landed cost, including delivery and the duty itself, so a 10% duty also raises the VAT bill. That is why getting the origin paperwork right is worth real money.

For car dealers

Know your margin before you buy

MyCarDealer compares any car from an auction or listing with the market in your country and shows the net margin after VAT, transport and costs – and the maximum bid.

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Import duty and VAT: 0% or 10%?

Under the UK-Japan Comprehensive Economic Partnership Agreement, the UK tariff on Japanese-made passenger cars has been phased out and reached 0% in 2026. The preference only applies if:

the car was manufactured in Japan under the agreement's rules of origin – where it was sold or registered doesn't matter,
you can back the claim with a statement on origin from the exporter or with your own "importer's knowledge" evidence,
your customs agent claims the preference correctly on the import declaration.

If origin can't be shown, the standard 10% rate applies. Be careful with Japanese-brand cars built elsewhere: a model assembled in Europe, Thailand or the US and later sold in Japan doesn't become Japanese-origin just because it ships from Yokohama.

Import VAT at 20% applies either way. A VAT-registered dealer can reclaim it on the next VAT return. Keep in mind that cars you import yourself from outside the UK generally can't be sold under the second-hand margin scheme (qualifying collectors' items are the exception), so you charge VAT on the full selling price – see our guide to the second-hand margin scheme before you price the car.

Very old cars can qualify for a reduced import VAT rate and nil duty as collectors' items of historical interest, but only if they meet strict conditions (typically at least 30 years old, in original condition and no longer in production). Don't build a business case on this relief without confirming it with your customs agent first.

NOVA, vehicle approval and registration

Once the car lands, the paperwork runs in a fixed order:

Customs clearance – your shipping company or customs agent makes the import declaration and pays duty and VAT at the border.
NOVA – tell HMRC within 14 days that the vehicle has arrived. You can't register it until NOVA is complete and VAT and duty are paid.
Vehicle approval – cars under 10 years old need an Individual Vehicle Approval (IVA) from DVSA. Cars and light vans over 10 years old are exempt from vehicle approval, though they still need a valid MOT to be registered.
Registration – apply to DVLA with form V55/5, proof of approval, an MOT certificate where required, insurance and the registration fee. DVLA then issues the registration number and V5C.

Typical changes before an IVA or MOT include a speedometer that reads in mph, a rear fog light in the right position, and checks on tyres, lights and seat belts. Our article on individual vehicle approval without a CoC explains what the test looks at. You may only drive the car on public roads before registration on the way to a pre-booked MOT or approval test.

Buying at Japanese auctions: what to check

Most Japanese imports are bought through an exporter who bids for you at the big dealer auctions. The auction sheet is your main tool:

overall grade – a number (often 3 to 5, with higher meaning better) plus a separate interior grade; "R" or "RA" marks repaired accident damage,
damage map – letters and numbers for scratches, dents, rust and repairs on each panel,
inspector's notes – handwritten in Japanese, so ask your exporter for a full translation,
mileage – compare the auction mileage with the export certificate and any service records.

Ask for extra photos of the underbody and engine bay and confirm what the exporter's fee covers. Our guides on auction condition reports and mileage checks for imported cars cover the same logic for European auctions.

Japanese imports in Ireland

Ireland also drives on the left, so Japanese imports are a common source of right-hand-drive stock. The EU-Japan Economic Partnership Agreement has phased out the EU tariff on Japanese-made cars, again only with valid proof of origin; otherwise the 10% third-country duty applies. Irish imports then pay 23% VAT at import, VRT before registration and an NCT once the car is old enough. For Irish dealers the VRT bill often decides whether a Japanese import beats a car sourced in the UK or the EU – see our guide to VRT on imported used cars.

Do Japanese import cars hold their value?

Resale is where many dealers misjudge Japanese imports. A rare sports car or a well-specified MPV can sell quickly to enthusiasts and large families, but a Japan-market version of a car that was also sold in the UK often fetches less than the UK-supplied equivalent, because buyers worry about parts, insurance and future resale. Before you bid:

compare the asking prices of similar imports with UK-supplied versions of the same model,
check how long comparable imports stay unsold,
price in the full landed cost, approval, preparation and your margin.

If you sell imports across borders, compare what the same car is worth in different markets first – checking the market price before buying shows whether a Japanese import actually leaves you a margin or just ties up cash.

Frequently asked questions

Is it cheaper to buy a Japanese import car?

Often the purchase price is lower for the condition, but once shipping, VAT, possible duty, approval and registration are added, the saving shrinks. Imports make most sense for models you can't buy locally or for unusually good examples.

What is the import duty on Japanese cars in the UK?

Japanese-made cars can be imported at 0% duty in 2026 under the UK-Japan agreement if you can prove origin. Without proof the standard rate is 10%. Import VAT of 20% applies in both cases.

Do Japanese imports need an IVA test?

Cars under 10 years old need Individual Vehicle Approval before registration. Cars over 10 years old are exempt from approval but still need a valid MOT.

Are Japanese import cars more expensive to insure?

Many insurers charge more or limit cover for imports, especially for performance models, because parts and repair information are harder to get. Get a quote before you buy.

How long does it take to import a car from Japan?

Plan for several weeks of sea freight plus customs clearance, approval and DVLA registration. Ask your exporter and shipping agent for current sailing schedules before committing.