The post-Brexit landscape has changed the terms of business between the UK and Europe, causing some confusion about tariffs and taxes when importing commercial goods.
Your Business’s Responsibilities
If you’re importing goods into the UK from Europe, you must declare them to HMRC, as VAT and duties may be due. While most commercial shipping is still tariff-free following Brexit, tariffs vary for some categories of goods, while you may also be able to defer, reduce, suspend, or obtain relief from import VAT in some situations.
Importing Goods and VAT
VAT applies to the majority of imported goods at the same rate as if they had been supplied in the UK. If your business is VAT-registered, you can declare import VAT on your quarterly VAT return and reclaim it as input tax; alternatively, you can pay import VAT when goods are imported to the UK and reclaim it on the goods you own. Businesses that are not VAT-registered will have to pay import tax but will be unable to reclaim it later, although it can still be defrayed as a business expense against Corporation Tax.
Wines, spirits, and beer are subject to excise duty, as is tobacco, composite goods containing alcohol, hydrocarbon oils, and biofuels. Different rates apply to each category of goods, while each product also has a unique tax code to identify the type and rate of Excise Duty payable. Goods that arrive in the UK from the EU which have not had Excise Duty paid may be retained by customs, with the liability passed to the buyer, so it’s essential to ensure that all relevant duties have been paid in advance of the shipment to prevent holds ups, disruption, and costs.
Contact NTEX For Specialist Shipping From Scandinavia To The UK
If you’re looking for an expert shipping service between Scandinavia and the UK that guarantees full compliance with all regulations and customs requirements, get in touch with NTEX today on 01469 571440 or send us a message for a prompt response.
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