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    1. fai0616 is offline

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      #1

      How does import tax work - VAT on imports into the UK

      Hi all

      Could someone give me some information about importing tax?

      Is this tax payed by the import company? Or paid at the border?

      Many thx
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    2. WholesaleMod's Avatar
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      #2
      Hi Fai0616,

      It sounds like you are drop shipping the item from a foreign supplier to your customer. Is this the correct assumption? If so, then it is your customer that is responsible for import duties, because they will be considered the importer.

      If however you are importing yourself, and then shipping to your customers from a UK location, in that case you are the importer, and you would be classed as liable for paying import duties.

      Remember that import tax is split into import duties and VAT. The Import VAT percentage rate is applied to the total value of the goods. The total value of goods is made up of the sum of the customs value and the customs duty:

      - Customs value is: The cost of goods, cost of freight and the cost of insurance

      - Customs duty is: A tax charged on the importation of goods produced outside of the EU

      On 4 January 2011 the standard rate of VAT increased from 17.5% to 20%.

      When you are the importer, and you are importing into the UK from a country outside the EU, then you are required to pay import VAT on those goods. Imported goods need to be declared to the HMRC and any import VAT due paid. You can download the declaration form for imported goods from the following link: HM Revenue & Customs.

      If you are using a courier to ship your goods from A to B then the courier will take care of charging you the total import VAT.

      If however you are importing goods into the UK from another EU member country, then you do not have to pay import VAT.

      For more information about UK import VAT and importing into the UK, have a look at the following HMRC link: HM Revenue & Customs: Customs Duty, Excise Duty and Import VAT: introduction

      Hope this helps
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    3. kevinstylus is offline

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      Check the rate of duty on your particular items at the Rev and Customs site. Every product is classified by an import code, in some instances that code can be over 50% duty (bikes from China for example) you'll need to build the duty and the VAT costs into your biz plan.

    4. displayonacrylic is offline

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      usually ,the import tax depend on different countries . If you want to know the local tax ,it is better to consult local Cutoms or ask your friends who have experience of import

    5. Snookerbro is offline

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      What would the tax be for Australians bringing in products?

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      #6
      Hi Snoookerbro,

      Welcome to Wholesale Forum

      The charges for goods imported into Australia may include clearance fees, customs duty & GST and other taxes.

      Australian customs duty is calculated as a percentage of the customs value of imported goods. Duty rates lie between 0% and 10%, the majority of all imported goods have a duty rate of 5%. For a total picture of the calculation of customs duty and also GST, have a look at the following link: Customs Brokers | Australia Post Customs Clearance Service

      The cost of importing depends on the type of goods imported. These goods have a Tariff classification number which specifies those goods in an 8 digit reference number and 2 digit statistical code. These numbers, obtained from the Australian Customs Tariff , identify the type of goods imported and the duty rate applied.

      For more information about importing we recommend having a look at: importing goods

      If the process of importation into Australia seems to much for you, you could always choose to use a customs broker who will be able to help you through the process. Have a look at Customs Broker Australia | About Aus-Express Customs Brokers for example.

      For more information, try reading the following thread:Hope this helps

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