VATImports and Exports

Understanding VAT on Imports & Exports

Post-Brexit, all arrivals and departures of goods to and from the UK are, from a VAT and duty perspective, imports and exports. Businesses importing and/or exporting goods need to be familiar with the VAT rules and the regulations which govern imports and exports.

Whether importing or exporting, the rules and regulations which must be adhered to are complex and failure to comply can result in financial penalties. We have a specialist VAT department, to help guide businesses through the complexities of importing and exporting. Whatever your query, why not get in touch and discuss it with a member of our team.

VAT on Imports

Goods entering Great Britain (England, Scotland and Wales) from overseas are subject to import VAT and Customs duty. Import VAT is payable on the shipment value of the goods and rates have been known to change frequently.

Import VAT can be paid on arrival or on your VAT return using the postponed accounting scheme, and can be reclaimed on your VAT return subject to the normal VAT recovery rules.

Customs duty is payable on arrival unless you hold a duty deferment account. Customs duty cannot be reclaimed from HMRC.

It is important to note that Northern Ireland is still part of the EU single market and goods entering Northern Ireland from the EU are not subject to Customs procedures and do not incur import VAT.

VAT on Exports

A supply of goods to a destination outside the UK is an export.

Direct exports: For VAT purposes a direct export occurs when the supplier sends goods to a destination outside the UK. It is the supplier who is responsible for either arranging the transport or appointing a freight agent.

Indirect exports: An indirect export occurs when an overseas customer or their agent collects or arranges for the collection of commercial goods from the supplier within the UK and then takes them outside the UK. This includes goods collected ex-works.

Exported goods, whether direct or indirect exports, are zero-rated in the UK provided certain conditions are met. VAT and customs duties are levied in the country of destination. It is therefore important to agree who is responsible for paying duties and taxes before shipping.

To export goods from Great Britain an EORI number with a GB prefix is required. Goods being moved to or from Northern Ireland may require one which starts with XI.

How the Shorts team can help

Whether importing or exporting, the VAT rules and regulations which must be adhered to are complex and failure to comply can result in financial penalties. We have a specialist VAT department, to help guide businesses through the complexities of importing and exporting.

Whatever your VAT query involves, get in touch with our team of specialists today.