For businesses who import goods from Scandinavia, the prospect of calculating import duties and taxes is alarming for many, who are convinced that wading through the regulations will be time-consuming and confusing. While the task is, in fact, not an impossible mountain to climb, working in partnership with an expert shipping and freight forward business, such as NTEX, can simplify the process as you’ll be able to draw upon their experience and knowledge to ensure the right fees are paid.
Import Duty and Taxes: What Are My Liabilities?
Goods that are purchased outside the European Union are liable to import duty and tax, which must be paid to UK Customs and HMRC respectively. Most shipments are liable to these charges and must be paid before the goods will be released, so prompt payment is essential to ensure that delays at customs don’t impact delivery times.
For goods shipped from Scandinavia to the UK, the duties and tax structures are, thankfully, straightforward. VAT is payable on all shipments (including the cost of shipping and import duty) and is charged at the standard UK rate of 20%. VAT may be reclaimable in certain situations, for example if you own the imported goods, but any items put back into free circulation in the UK will be liable for these charges.
Import duty only applies to certain categories of goods, known as Excise Goods, including alcohol, tobacco, and biofuels. Tariff-free trading continues between Scandinavia and the UK despite the UK’s exist from the European Union.
Norway Isn’t Part Of The EU: How Does This Affect Our Liabilities?
Norway is not a member of the EU but is part of the European Economic Area (EEA), so shipping between Norway and UK follows most of the same rules as other EU imports. There are no import duties due on most goods, except for Excise Goods, while some other categories of goods are not covered by the EEA agreement. These include pharmaceuticals, raw materials, textiles, fishing nets, and agricultural machinery, for which an import licence will be required and import duties will be payable.
How Are Import Charges Calculated?
The following example uses the most common method for the import of non-Excise Goods from Scandinavia:
Value of goods: £5,000
Cost of shipping: £750
Total value of shipment: £5,750
Import duty: £0
VAT (@20%): £1,150
How NTEX Can Make Your International Shipments Simpler and Smoother
While the tariffs and VAT structure isn’t complex between Scandinavia and the UK, it pays to get your calculations right first time. Mistakes can lead to delays and additional fees, so working with NTEX can ensure that charges are correct and documentation is completed accurately. Knowing that a specialist logistics expert will manage these vital aspects of your shipment to the UK will save you precious time and reduce the chance of delays.
To find out more about our shipping services between Scandinavia and the UK, please get in touch on 01469 571440 or send us a message for a prompt response.
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