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Avoiding Duty and Taxes on Imports

Discussion in 'Import & Export' started by ShippingDude, May 11, 2009.

  1. Import Expert

    Import Expert

    Joined:
    Oct 6, 2011
    Messages:
    3,331
    Is this import VAT you are talking about? What are the products?
  2. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,441
    It sounds like they are charging you the UK import VAT up front. A US company used to do this for us. If they didn't charge it then HMRC would.

    I assume you are not getting charged another 20% once it enters the UK?
    soleburner likes this.
  3. soleburner

    soleburner

    Joined:
    Nov 7, 2008
    Messages:
    31
    HI
    Nope just that 20% on their end.

    Also you know about if I can claim this back if I come registered?

    Thanks for advice
  4. Dean

    Dean

    Joined:
    May 22, 2008
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    They are paying the import VAT up front. While you are not VAT registered, it makes no difference if they pay it or you pay it when it reaches the UK. If you became VAT registered then it would make sense for you to pay it on entry to the UK and then offset it in your next VAT return.

    It only makes sense to become VAT registered if the VAT you pay on your purchases is more than the VAT you would have to charge your customers. Or you reach the required threshold of course (£80k ish I believe now).
    soleburner likes this.
  5. soleburner

    soleburner

    Joined:
    Nov 7, 2008
    Messages:
    31
    Thanks a lot Dean,

    You have done what a lot of my so called friends would refuse to do, say it in English lol

    I thank you very much and you can be sure that you have made my evening.

    Kind Regards
  6. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,441
    No problem.

    If you are ever seriously considering registering for VAT I highly recommend speaking to an accountant as it can get complicated.
  7. ImportfromIndia

    ImportfromIndia

    Joined:
    Dec 24, 2016
    Messages:
    1
    Hi,
    I am a designer and I want to start getting few silk scarves from India which my friend buys for me locally an get them embroidered by local artisans. Now, the number of pieces that I buy usually are between 20-30 that may go upto 200£ overall which will weigh around 3 kgs. The only people that provide an invoice is the shops that sell us silk material but the artisans do not have this. It works quite differently in India, and you can go to a tailor which is a small shop and they stitch for you your designs. Now when these items are shipped to me into the UK, what am I supposed to declare? I have a company registered in the UK.
    I will continue this model as I make small designer items to sell to my clients in UK. What category do I fall into?As I do not really deal with a huge supplier as most of you have discussed in this forum. Any advice will really help me.
    Thanks :)
    N
  8. Alan Starkie

    Alan Starkie

    Joined:
    Oct 11, 2017
    Messages:
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    I run a repair business here in the UK. Basically, someone sees our website anywhere in the world, decides to send an item for repair ad-hoc, by post or courier etc - we fix it and return to the customer. The sting in the tail for us is that we get charged VAT and Duty when the goods arrive, then we can claim it back after the goods have been returned. It is possible to get the duty deferred but HMRC needs a bank guarantee to do this. If we reckon that say £3,000 of duties, HMRC double the figure and ask for a bank gaurantee for £6,000. To do this, the bank require us to lodge £6,000 in an account we can't touch! If the customer uses FedEx, UPS or suchlike, they write on the customs form our EORI number and 'For Repair and Return'. These items usually just avoid HMRC but if the customer sends goods by their own national postal service, they end up with Parcelforce and the fun really begins, Forms, emails, stuff in customs for weeks before eventually being presented with a big bill to release the goods. As for the UK promoting international trade, hmmm. I'm dreading Brexit then we've got it all with our EU customers too ;p
    Import Expert likes this.
  9. toomsie

    toomsie

    Joined:
    Mar 9, 2016
    Messages:
    11
    I guess it gives you an advantage over the competition who pay taxes. If you are paying less while everyone is paying more then that is an advantage, no?
  10. toomsie

    toomsie

    Joined:
    Mar 9, 2016
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    Dealindoesn

    We are taxed a fraction on everything all the way down. This makes it hard to calculate the true cost. Think about the processes that give you a car. Every process and subprocess is taxed. Every nut and built, every service engineer.
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