How to work out import duty charges UK
September 3, 2008
How to work out import duty charges
You will find that import duty is worked by a number of factors, these being the type of goods, country of origin and their value.
If you need details about VAT rates I advise you HM revenue and Customs on 01702 366077 this will put you through direct to their tariff classification service department. If the goods have come from inside the European Union (EU), no duty will be payable by yourself, Unless the items are tobacco or alchohol as these will be charged even within the (EU).
If the items you are importing originate outside of the European Union and duty has been paid on them in another EU country before being delivered to you, once again you will have to pay no duty charges.
If you find that the goods you are importing have not paid any duty in any other EU country and the goods have come from outside the EU you will need to pay duty. If you find yourself in this situation you will need to calculate the value of the goods there 6 ways to do this. If you find method 1 does not work the move onto the 2nd and if no joy the 3rd method and so on. The HMRC will show you how to calculate duty at this link HMRC WEBSITE DUTY HELP .
Please remember duty cannot be reclaimed unlike Value Added Tax . So even if you are a registered company that is VAT registered in the UK you still cannot reclaim the VAT element.
Keep an eye out for my helpful articles about importing to the UK and the best of luck with your website please visit our winshport website often to establish good advice from our resident import expert Matt Cromie.
Importing and VAT UK
September 3, 2008
Importing and VAT and what is Involved?
If you use the rule that most imports have to have VAT added to them, just as if it was an item supplied within the UK.
Also keep in mind that VAT is handled in different ways and the big decider in this matter is whether the imported goods are imported from within the European Union or outside the EU. A point to remember and can be to your advantage if some goods are already in free circulation in any EU country this meaning that duty and VAT has already been paid (sometimes a lower rate than the UK) you should not have to pay anymore charges shipping them into the UK.
Remember goods are always treated as imports if they have come to UK direct from a non EU country or from an EU country with no VAT or duty already being paid (not being released for free circulation). You will then have to pay duty and VAT. Check out the HMRC website for info on this and what countries are included in the EU for VAT purposes at this link.
You will normally have to declare to the HMRC any goods you import and pay the applicable duty and VAT. The best way to start this process is to phone HMRC national advice number on 0845 010 9000. Please note duty and VAT must be paid to the HMRC before any imported goods will released by customs.
For those of you doing a bigger turnover and importing goods on a larger scale you may have to complete an Intrastat Supplementary Declaration this is if you imports to the UK from the EU exceed an annual amount of £260,000 per a year. Keep an eye out for our advice article about the introduction to Intrastat.
Import VAT The Basics
September 3, 2008
Import VAT The Basics
There are some key points and strict rules to remember if you choose for your business to trade internationally. At some point you will probably find your company paying UK customs duty and VAT.
By making sure you understand which VAT and duty parts apply to your business will help you plan ahead for charges and have no nasty surprises. If you do find yourself importing goods there will be a following article which will explain the advantages of deferring import customs duty and VAT and also tell you how to get all this VAT back to offset.
Always keep in your mind that VAT on exports and imports is very complex so doing your homework could save you a lot of time and money. The best advice I can give is if there is anything you are unsure of regarding your business vat and duty charges you can always contact the HMRC for free advice via their national advice service.
Keep an eye out for my other articles in this series of winshport import advice as I will be explain the pros and cons of importing in plain English making the minefield of importing approachable by providing you with map advice, help and where to find information. Doing your homework at the early stages of setting up your import business will save you much time and money as I learnt the hard way by running before I could walk. Keep your faith in Importing even if it seems hard at first as it is a Multi Billion pound business and there is a slice for you!
International Background Checks 101
August 16, 2008
International Background Checks 101
International Background Checks 101
By A. Hathaway
Background checks and the services available.
A Rise in Demand
With more people around the global accessing the Internet, and the global population itself exploding exponentially, the world is making a fast transition to online. Businesses around the world now make their hiring decisions based on candidates they find on the Internet. New websites for match making or online dating are popping up daily. These days, it’s not uncommon to find a business partner or even find a spouse on the Internet. In this brave new world, come some sizeable risks.
Verifying the Story
How does an individual in Paris verify a boyfriend’s story who lives in Brazil? Or how does a small business in the United States verify a new supplier located in Singapore? And when looking for romance, just how do we know if he or she is really who he or she claims to be? These questions are becoming more common and so is the demand for background checks. The following section describes some of the services available to learn the truth.
Knowing your Options
The services offered for background checks vary greatly. Some websites offer simple searches for public records, while others combine public records searches with actual investigation. We prefer the latter, as real investigation has real results in most cases. Among the top 3 players in the United States are Kroll, Owens Online and Wymoo International. Wymoo has been expanding its market share by concentrating on customer service and custom investigations. All 3 companys have a strong global presence, while the latter offers surveillance, local investigators and complete narrative reporting.
Pricing the Market
An average background check can cost between $200 and $800, depending on the country of origin and the information needs of the customer. An average background investigation to verify a small business or foreign romance usually ranges between $400 and $600, again depending on the country and specific need for information. Always shop around for service quotes.
Filling the Need
Is it really worth having your international romance, or foreign business partner verified? Absolutely. This is the age of identity theft, relationship scams, advance fee fraud, and these scams are on the rise. Think of a background check investigation as an insurance policy. One can cross his fingers and hope for the best. We recommend contracting a professional background check service, and sleeping well at night knowing the truth.
Best of luck,
A. Hathaway
© 2006-2008 A. Hathaway
A. Hathaway has 20+ years of experience in fraud prevention, foreign markets, international investigations and background checks. His ongoing travel experience consists of over 35 countries and 6 continents. He has worked as a consultant for major firms including Philippine PI and maintains his own blog
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Understanding Import VAT-Understanding The Tax On Importing
August 16, 2008
Understanding Import VAT-Understanding The Tax On Importing
Understanding Import VAT-Understanding The Tax On Importing
By Jack Shepard
Import VAT (value added tax) is a tax levied on the total value of exchanges. VAT is typically due on all new goods imported to the United Kingdom at the same rate that applies to goods manufactured and sold within the UK. Services rendered are also subject to tax at a VAT rate.
If the goods are manufactured from outside the European Union then imported to the United Kingdom, the goods are said to already be in “free circulation”, and no additional VAT is due. The same is true when goods when you import them to the UK then sell within the EU. The tax should only be applied once upon entry to any EU locale. Service VAT is levied to all services, always.
Goods that are bought and sold second hand, such as art and collectibles, are charged a VAT rate based on the purchase price rather than the value of the goods. This payment scheme is optional for those dealing in second hand goods. You may opt to seek advice from an accountant if your second hand sales exceed £150,000 in any year.
Services relating to land and property, such as hotel stays, are taxed at the rate for the country where the land is. Physical services, such as catering, are taxed at the VAT rate for the country where the service takes place. E-commerce and distance learning are charged VAT for the country where the customer is located. Passenger and freight transport is taxed the VAT rate for the country where the transport is supplied.
The HM Revenue and Customs (HMRC) issues VAT to individuals, rather than businesses, in most instances. There are three basic VAT rates charged by HMRC - 17.5% is standard; 5% is the reduced rate and a zero rate. Depending on your business type and accounting practices, you may choose one of the following payment schemes, as set by HMRC.
The annual accounting scheme you make instalment payments at preset intervals. You pay an estimated VAT bill each month or quarter until the end of the year. At that time, you complete your accounting and submit a single return and balance due. Benefits of this scheme make accounting much simpler, as you know how much you regularly scheduled VAT bill will be ahead of time. You save accounting time by completing just one return per year. If your annual income is not expected to exceed £1,350,000, you may choose this scheme. Application for this scheme is required, contact HMRC for further instructions.
Cash accounting scheme allows you to pay VAT only on the payments you receive and make, rather than on invoices. If your customers typically pay late or at prolonged intervals, this is likely a better repayment scheme. You must meet specific conditions set forth by HMRC and your annual turnover may not be expected to exceed £660,000.
A payment scheme created specifically for retailers is for you if you sell direct to the public. The most valuable benefit this scheme provides is a simpler set of rules, saving significant time and money. Turnover limits do apply, depending on your business. Contact HMRC for further details.
Jack Shepard writes for Accordance VAT, an international VAT consultants, specialising in Import Tax & Duty . Accordance VAT offer a unique cross border tax consulting pratice, by providing one central contact for all your international VAT compliance queries.
Please visit Accordance VAT For more information about EU VAT and other international tax compliance issues.
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UK Import Duty - Calculating Import Taxes For Goods Imported From the USA to the UK
July 4, 2008
UK Import Duty - Calculating Import Taxes For Goods Imported From the USA to the UK
By Andrew Gardner
Why Buy from America?
Many people travel to America, particularly New York, with the sole intention of shopping. The reasons for this are clear: wider choice and cheaper prices. In many cases, the savings made will actually pay for the trip. Strangely, those very same people may be unwilling to buy the same items online from the comfort of their own home because they are concerned that the import duty and tax will make the item more expensive than buying locally within the UK.
The purpose of this article is to explain the UK import duty charges and show that you can buy goods from the USA and still make considerable savings over UK prices.
Will I be charged?
Not every package will be charged - commercial consignments under £18 or gifts less than £36 are free from import duty and VAT. Also, some suppliers will deliberately label a package as a gift or under-value the contents to fall under the taxable threshold. Bear in mind that you, as the importer, are responsible for ensuring that this information is accurate. Worst case scenario - the goods can be confiscated if is felt that you tried to deliberately avoid paying import duty. However, it’s not very likely that this will happen.
Calculating the charges
- Determine the import duty for the product type you are importing. You can find this information from the TARIC database (Integrated Tariff of the European Community) e.g. Sunglasses have an import duty of 2.9% (US to UK)
- Combine the product price and delivery charges together to give a total price
- Convert dollars to pounds - use a currency converter site.
- To this total price add on the % import duty
- To the price obtained from Step 4, add on 17.5% VAT
- Add on an administrative charge applied by the carrier to process the item through customs (currently Royal Mail charges up to £8)
Worked Example
A £100 pair of sunglasses, with £15 delivery charges would have a total cost of £115. To this you would add 2.9% import duty of £3.34 to give £118.34; add 17.5% VAT to this figure which gives £118.34 + £20.71 = £139.05. Finally, allow up to an £8 charge by the carrier to give a final total of £147.05. Having paid the initial £115 to the supplier, you would then pay £32.05 to the carrier on delivery of the item.
Conclusion
By using the procedure detailed above, you can calculate the final price after import duties have been applied and then compare that price with the cheapest UK online stores. With all these charges being applied, it may seem hard to believe that it can be cheaper to import an item from America - but believe me, for many items it is much cheaper. Not only do you get to save money, but you open up a whole new marketplace that previously you may have ignored.
Resources
1) Find the import duty for your product category at the TARIC database.
2) Convert dollars to GB pounds at a currency converter site.
(c) Copyright - Andrew Gardner. All Rights Reserved Worldwide.
About the Author
“Like designer sunglasses but not prepared to pay sky-high prices?”
Buy authentic designer sunglasses for half-price at http://www.apairsunglasses.co.uk if buying in the UK or http://www.apairsunglasses.com if buying in the US.
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