Duty and VAT Implications on Export and Import
by Vidit Agarwal Marketing DirectorDo you pay VAT and other taxes on import or export? Rules
for import and export are complex and it is imperative than an individual or an
organization involved in export and import activity understands them to avoid
penalties. Any product or services before entering or leaving the country goes
through custom clearance check and you need to pay any VAT and duty that is due
before you can collect them. VAT and Duty implications depend on whether the
goods are imported within the EU or a non-EU country.
Value Added Tax (VAT):
VAT is payable on the goods purchased from non-EU countries
and special EU- territories such as Canary Islands. The VAT is not only paid on
the price of the goods but on the total value of the good which also includes
any duty charges that is due and need to be paid and insurance, postage and
packaging cost. Please note you need to pay VAT on tobacco, perfume, alcohol or
cologne irrespective what they worth but you don’t need to pay VAT on gifts worth
more than £39.00 or on any other goods worth more than £15. It is not important
to register for VAT to bring goods in but if you are not registered for VAT in
UK, you won’t be able to defer, suspend or obtain relief from import VAT as
input tax.
Acquisition Tax on Goods
from EU Countries
Acquisition tax arises on goods and services which are
brought in UK from other countries within the EU. If you’re registered for VAT
and purchased goods from EU-countries, you can reclaim the VAT paid by filling
output Vat on your VAT return to claim the amount as input VAT. VAT on goods
and services imported from EU-Countries are accounted as acquisition tax. The
VAT will be charged at the same rate that would apply to the product or service
by the UK supplier. If you’re not register for VAT your supplier will charged
VAT at the local rate of that EU country from which goods are supplied.
VAT on Goods from Abroad
If an individual or a business is receiving goods from outside
the European Union (EU) they may be entitled to pay VAT, excise duty and custom
duty. Excise duty is charged on excise goods imported from abroad such as tobacco,
alcohol. Custom duty is levied on the value of the good that are purchased from
outside EU countries. The VAT is paid at same rate that would have been paid if
supplies were purchased from UK supplier. The VAT rate is reduced on imports of
antiques, work of art, and collectors’ item. Import VAT certificate (form C79)
showcase that VAT is paid.
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Created on Mar 19th 2019 06:03. Viewed 355 times.
it is so informative.nice article
Apr 26th 2019 07:34