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Whether you import or export, there are important VAT rules and procedures and tax These depend on whether you are dealing with a customer or a supplier in another EU country the European Union or the rest of the world.
In both cases, you must ensure that you charge or pay the correct amount of VAT If you import from outside the EU, you may have to pay import duties.
Confirm if you deal with other EU countries.
The 28 EU countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.
You are normally responsible for clearance of goods by the British customs and pay taxes.
Your provider must provide the documents you need to clear goods through customs and paying the supplier.
VAT procedures vary depending on whether you are buying EU country of goods or import of EU goods outside.
If you import from outside the EU, you may have to pay import duties.
Your responsibilities depend on what you agreed in the contract In order to minimize the risk of litigation, your contract should use one of the internationally accepted Incoterms.
You are normally responsible for clearance of goods outwards by British customs.
Your customer is normally responsible for overseas duty and taxes You can learn more about how other countries deal with the rights and duties of UK Trade Investment.
You must provide your client with the documentation they need to clear goods in their country and to pay you.
Procedures vary depending on what you sell to other EU countries or exported to countries outside the EU.
Your responsibilities depend on what you agreed in the contract In order to minimize the risk of litigation, your contract should use one of the internationally accepted Incoterms.
Deciding to use an agent to manage your responsibilities.
Freight forwarders can handle customs clearance and transportation.
Exporting can be easier if you choose to sell to a single agent or distributor in a country overseas, however, this may not suit your export strategy.
If you sell to a consumer or an enterprise not subject to VAT you charge VAT at the standard rate of VAT in the United Kingdom for goods.
If you sell to a company subject to VAT, goods are normally zero-rated for VAT You must include the customer's VAT number on the invoice, and keep proof that the goods have left the UK.
You must provide a VAT invoice Keep copies of all invoices.
Declare the total value of sales to other EU countries on your VAT return.
HM sales call HMRC Revenue Customs to other EU countries or removals shipments rather than exports officially export refers to a sale to a customer outside the EU.
You submit VAT numbers of your customers and the value of sales you made to use a list EC Sales also known as Form 101 VAT You normally do this quarter.
Check that you must complete a supplementary declaration Intrastat.
You must complete an Intrastat declaration if the total value of your shipments to EU countries exceeds 250 000 per year.
You use the C1501 form to report the details of your dispatches.
Check whether you need to register for VAT in all EU countries you are selling.
If your sales to consumers and non-VAT registered businesses in all EU countries beyond, you must register the country of registration of distance selling threshold.
Exports are generally zero-rated You must keep proof that the goods were exported.
There are exceptions where exports are zero-rated, you can check the details with your professional association, local chamber of commerce or HMRC.
You must report the export This is usually done by completing a single administrative document SAD, also known as C88.
You must provide your client with the documents they need to import the goods in their country The provision of these documents can also be part of the process to get paid.
At minimum, you'll need the exporter registration documents you, the customer, the products and their value, export destination, how the goods will be transported and the route they will take.
Keep copies of documents giving details of all sales you made.
Record the value of your exports on your VAT return.
Take care of any liability you have for clearance abroad and taxes.
Normally, you have agreed that your client handles this Take advice specialist or use expert agent, if you are responsible.
This allows the zero-rate provider offering tax.
Confirm that the documents you need the supplier.
You will need a VAT invoice as with any other purchase.
Purchases of goods from other EU countries are called acquisitions or arrivals, rather than imports Officially, importation refers to a purchase from a supplier outside the EU.
You must account for VAT on the acquisition tax acquisition VAT on your VAT return is billed at the standard rate of VAT in the United Kingdom for goods.
You reclaim this acquisition tax in the same way as you reclaim input tax on purchases of supplies in the UK.
Check that you must complete a supplementary declaration Intrastat.
You must complete an Intrastat declaration if the total value of your EU country of acquisitions over 1 5 million per year.
Import duties are based on the type of products you import, the country where they come from and value.
Integrated tariff HMRC determines the classification of goods and retail tariff rates.
Your trade association or your import agent may be able to advise you.
Confirm that the documents you need supplier for clearance.
This normally includes an invoice and a copy of the transport documents.
You may need proof of the origin of goods to demand a reduction in import duties of some countries of property.
An evaluation document is also normally required for imports above a set value.
You normally declare imports using the Single Administrative Document SAD.
You pay VAT at the standard rate in the UK these goods when sold in the UK.
regular importers can defer payment of VAT and duty by opening a credit account with HMRC You must ensure safety and must agree to pay by direct debit.
HMRC will send you a certificate showing the C79 import VAT you have paid, you must keep it.
You can recover VAT on imports in the same way as you reclaim input tax on purchases of supplies in the UK.
Check if the goods you buy are subject to excise duty.
Excise duty is loaded on the fuel, alcohol and tobacco.
Excise duty is levied on EU within acquisitions and imports from countries outside the EU.
If the goods are subject to excise taxes, you pay it at the same time you pay VAT and import duties.
VAT is charged on the value of goods and excise duties.
Consider using a customs warehouse if you plan to store the imported long.
If you store goods in a customs warehouse, you will not need to pay duty and VAT import until you want to remove the goods from the warehouse.
Storage link like this is often used for excise goods, such as wine and cigarettes.
Learn about tax relief as possible if you plan to re-export of goods you import.
You may be able to take advantage of special inward processing rules so you do not have to pay VAT and import duties.
This relief may apply to imports that you treat before re-exporting them.
If you import or export regularly, learn more about alternative procedures.
For example, companies that import regularly in large quantities may use processes such as simplified cargo customs procedures.
HMRC can provide information on issues of law and VAT.
Other sources of information and advice may include international trade advisors at your professional association or your local chambers of commerce.
HSBC Knowledge Center Understanding VAT and duties on exports and imports, excluding taxes, exports, imports.