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Import Tax

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If you are importing or exporting goods to or from the UK there are some VAT regulations that you have to follow and abide by. If you do not adhere to these rules then you could be fined considerably. You may have to pay import duty and VAT.

If you import goods you can defer import duty and VAT.

Imports and VAT: what do I have to do?

If goods are imported from a country outside the EC are treated as imports, they will have to be declared to Customs and Excise. You will have to pay VAT and import duty on such goods.

Acquisitions and VAT

You may have to complete an Intrastat Supplementary Declaration if you receive imports from an EC country that exceed an annual stipulated amount - (currently £221,000) Goods originating from inside the EC will not have Import duty bills related to them. No duty is payable on goods that originaite from a country outside of the EC when import duty has already been paid before they are imported. Where duty has not been paid you will be required to work out the value of the goods.
One publication you might find helpful is the Tariff. Published annually, it contains information about import and export requirements. You can read about how to obtain the Tariff on the Customs and Excise website.

VAT is not able to be reclaimed, even if your business is VAT-registered.

Exports and VAT: what to do?

You should enter details of any goods that your business exports on your VAT return.

If your business sells goods to countries inside the EC, then you need to submit lists and details to Customs and Excise on your VAT return.These lists are known as EC Sales Lists. See customs and excise website for more details.

If you have a high level of sales to EC countries you may need to submit an Intrastat Supplementary Declaration.

If your business exports to countries outside the EC the goods will usually be zero-rated for VAT, although you can check with Customs and Excise to confirm this.

Detailed documents that prove export should be kept, They identify:

  • the exporter
  • the customer
  • the goods and their value
  • the destination of the exported goods
  • the mode of transport and the route taken