VAT and Duty on Import from Abroad and EU-Countries

It is imperative for a business or an individual to inform HMRC about import of goods and services into the UK from other countries and they might also need to pay VAT, custom and excise duty on imported goods and services that is due to collect them. If a business or an individual is register for VAT, they may be entitled to import VAT relief.  To facilitate export or import into the country the goods and services undergoes the UK custom clearance check. Do you need to pay any VAT and duty depends on whether the goods or services are purchased from an EU country or not;

If goods or services are purchased or acquired from other countries in the EU, you must be accounted for VAT which is known as acquisition tax in this term. The amount of VAT you’ll be charged depends on whether you are VAT registered or not:

You must complete your VAT details in your VAT returns. The time of acquisition can be calculated as the earlier of:

  • If a business or an individual is registered for VAT in the UK, they will account for the VAT through their VAT return, the VAT will be charged at the same rate that would apply if the product is purchased from the UK supplier. You can normally reclaim the acquisition tax if acquisitions relate to VAT taxable supplies in a same way input tax is reclaim on the purchase of the supplies within the UK.
  • If a commercial entity or an individual is not registered for VAT and buy goods from other EU countries, VAT will be accounted at the local rate in the EU country from which the goods are bought.

You must complete your VAT details in your VAT returns. The time of acquisition can be calculated as the earlier of:

  • The date at which supplier issued invoice.
  • 15th day of the month following the one when the goods are brought into the UK.

If goods or services are imported from outside the EU countries, the VAT will be charged at the same rate that would apply to the product and service if they had been supplied within the UK.  There is no duty on the goods that are produced and imported within the EU countries. Custom and excise duty rises on the goods that are imported from non-EU countries. Custom duty is charged on the valued of the imported goods and gifts i.e. the price of the supplies and other expenses such as postage, packaging and insurance. The excise duty is charged on particular goods such as alcohol, tobacco. Please note if an individual or business import antiques, work of art or collectors’ item pay a reduced rate of VAT.

You must have import VAT certificate (form C79) to showcase that you’ve paid import VAT.

In UK, complex rules and regulations govern import and export. DNS can help organization that is involved in import and export of product and services to other countries to ensure that they are safe from any kind of penalties. DNS expert can guide you on how to obtain Onward Supply Relief after import VAT is paid. DNS can calculate for you the right amount of VAT and duty that you’re entitled to pay. They can also help you to reclaim the overpayment made by you due to misclassification of goods. 

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