Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
    1. uber789 is offline

      Join Date
      Feb 2011
      Location
      United Kingdom
      United Kingdom
      Posts
      38
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #1

      What is the difference between Import Duty and VAT?

      Can anyone tell me the difference between import duty and VAT? How do you know when you値l be charged one or the other? What are their purposes? I have been importing goods for my business for awhile, but never had to pay duty. Now that I知 expanding it into something more than a hobby, I知 being whacked with new charges, like duty, and I don稚 understand why.
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    2. Luis21 is offline

      Join Date
      Dec 2010
      Location
      United Kingdom
      United Kingdom
      Posts
      176
      Thanks
      1
      Thanked
      4 Times in 4 Posts
      #2
      You might be having to pay duty at this point because of a change in the amount of items you’re importing or perhaps you’re importing a different item that has a higher duty rate.

      These two terms are easily distinguishable:

      VAT
      This is Value Added Tax, which is a tax charged within the EU community at various rates.

      Rate: Within the UK, the basic VAT fee is 20 percent (raised from 17 percent just this year) on most goods; however, some items are zero-rated, like children’s clothing. Goods that are valued below 」 18 aren’t charged VAT.

      Re-Claiming: If you are charged VAT for imported goods from within the EU, you can reclaim it at the end of the year. However, you still have to charge and collect VAT from your customers on the sale.

      Import Duty
      This is a customs charge to import goods into the country from outside of the UK.

      Rate: The Import Duty rate varies according to the type of good that is imported. The Fee Schedule covers so many different items, we could never include all of them here in this discussion. The way the fee is structured, however, depends on the nature of the item, its value, and where it originates from.
      HMRC has a guide for duty fees, but the fees usually range between 5 and 9 percent. It just depends on the item.

      Re-Claiming: Import Duty is never re-claimable.

      There are some guidelines that relate to value of the good where both VAT and Import Duty are applicable:

      • For goods under 」105 but over 」18, you have to pay VAT.

      • Goods over 」150, you have to pay VAT and Duty.

      • Finally, if the value of the goods is over 」150 but the duty percentage falls under 」7, they won’t collect it.

      These are some basic guidelines and elements of VAT and Import Duty.
      How a New Online Retailer Made Over 」3m Sales in 1yr With These Sources

    3. uber789 is offline

      Join Date
      Feb 2011
      Location
      United Kingdom
      United Kingdom
      Posts
      38
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #3
      That makes more sense now. I’ll have to check the fee schedule to see what future import duty I might be charged.

Sign Up Now

Got something to say? Sign up now and join the discussions.

Similar Threads

  1. Reclaim import VAT and calculate import duty
    By Iucounu in forum Accounting & Tax Discussion
    Replies: 10
    Last Post: 07 Jan 2011, 05:27 AM
  2. Free UK VAT and Import Duty Calculators
    By Vivienne in forum Accounting & Tax Discussion
    Replies: 6
    Last Post: 11 Nov 2010, 02:37 AM
  3. Will a courier company take care of VAT and import duty?
    By Iucounu in forum Accounting & Tax Discussion
    Replies: 9
    Last Post: 24 Dec 2010, 04:59 AM
  4. Import Duty & VAT when importing to UK from USA
    By Whilesleeping in forum Import & Export Discussion
    Replies: 4
    Last Post: 10 Jan 2011, 02:13 AM
  5. Importing products from Canada to the UK - Import Duty and VAT
    By Kylie Minogue in forum Import & Export Discussion
    Replies: 7
    Last Post: 30 Apr 2011, 12:28 AM
  6. Importing kiteboarding kites in UK - VAT and Import Duty
    By Iucounu in forum Import & Export Discussion
    Replies: 1
    Last Post: 03 May 2011, 07:33 AM
  7. Importing sneakers from china to UK - Customs Duty and VAT on the import of Trainers
    By 12snakes in forum China Product Sourcing & Importing
    Replies: 8
    Last Post: 09 Jun 2011, 05:02 AM
  8. Import Costs for Darting Equipment - VAT and duty rates for Steel tip darts
    By SallySoup123 in forum Import & Export Discussion
    Replies: 1
    Last Post: 07 Jun 2011, 02:07 AM
  9. Import Costs for Darting Equipment - VAT and duty rates for Steel tip darts
    By PeterPiper in forum Import & Export Discussion
    Replies: 1
    Last Post: 10 Jun 2011, 03:02 AM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 08:00 AM. - Fixed Width