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.
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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