How Fiscal IOR helped a US pharma firm import and reclaim UK VAT
How Fiscal IOR’s Indirect Representation service helped a US pharmaceutical company seamlessly import and recover VAT on their UK shipments
May 22, 2025
Fiscal IOR has a proven track record of supporting international pharmaceutical companies with importing goods into the UK and EU, either by serving as their Importer of Record or as their Indirect Representative.
The Importer of Record service is typically used for goods that are not intended for resale, as it does not allow the importer to reclaim any import VAT they incur. In contrast, the Indirect Representation service is generally used for goods intended for resale, as it enables the importing company to be listed as the named importer, which allows them to reclaim the import VAT they incur.
Fiscal IOR has provided services to companies in the pharmaceutical industry for many years and have built a strong reputation as reliable partner helping companies to import goods into countries where they have no presence.
The Challenge
Fiscal IOR was approached by a US-based pharmaceutical company who were looking to import pharmaceutical materials valued at £400,000, these goods were for use in clinical trials. As the value of the shipment was high, the import VAT to pay at clearance was significant at £80,000. The client sought a solution to both import their goods and to reclaim the import VAT they would incur.
The issue
If the goods were for resale, then the client could have applied for a EORI number and also a VAT registration in the UK. This would allow them to import in their own name and to reclaim any import VAT amounts they incur via a VAT return. However, as the items was intended for clinical trials, they were not for resale which meant the client was ineligible to apply for a UK VAT account from the UK tax authorities (HMRC).
The Solution
Through Fiscal IOR’s extensive experience within the pharmaceutical industry, they quickly recognised that an indirect representation service would be the solution. By providing this service and helping the client to obtain a UK EORI number, it allowed the client to import the goods into the UK and be the named importer for the shipment.
Then through the assistance of international VAT specialists Fiscal Solutions, the client was able to undertake a VAT reclaim with HMRC. This led to them successfully recouping all the import VAT that they paid for this shipment.
The Result: Successful VAT savings on future shipments
The client successfully replicated this process and were able to successfully reclaim all the Import VAT that they incurred.
This led to significant cost savings through the VAT recovery process and allowed them to use these amounts to invest in other parts of their business.
Get in touch
If your company is planning to import pharmaceutical goods but is unsure about how to navigate custom regulations and VAT reclaims, then Fiscal IOR and Fiscal Solutions can help. Please contact us for a free consultation using the form below.