Upon importing to a country there may be duty and VAT liability for that import. Some countries will have declared thresholds at which duty and VAT may become applicable – this varies from country to country.
For example, the USA currently has a duty and tax threshold of US $800 meaning anything below that value will not be liable for duty and tax. Other countries may be lower such as Canada where that limit is set at CAN $20. How this is managed and calculated will vary from destination to destination.
Some destinations such as the UK currently* will charge VAT only for goods declared between £15.00 and £134.99 and will only calculate Duty should the value of the products in the order equate to or exceed £135.00.
Pro Carrier will facilitate the declarations and customs clearance as part of our end to end service proposition. Pro Carrier via the Pro Carrier Duty Calculator can help our customers to predetermine what duty and tax will be levied by destination and by product. Please do not hesitate to contact us for further information.
*From January 1 2021 the £15.00 VAT threshold was removed so all values will now be subject to VAT
To assist with the customs declaration process and the accuracy of the calculations it is imperative that the data we are provided with is as meaningful and accurate as possible:
Rates of VAT will vary from destination to destination.
The value for VAT is the declared value of the goods plus the transport costs to the country of destination plus, where applicable, the Customs Duty.
Goods = 2 special edition CD sets
Value of goods £80 + Transport to the destination £35
Total value for Duty £115 x 3.5% Duty = Total Duty payable £4.02
Value of goods £80 + Transport to the UK £35 + Duty charges £4.02
Total value for VAT £119.02 x 20% = Total VAT payable £23.80
Therefore the total import Duty and VAT charges payable on import of these goods would be £27.82.
Pro Carrier, whilst being experts at understanding the logistical requirements to deliver your parcels, do not claim to be experts at understanding the complexities of VAT registration and VAT drawbacks etc.
To that end, we are pleased to share with you that we are working with Vatglobal to ensure our customers are getting the best advice possible. Vatglobal is a VAT/GST Compliance and Advisory business, responsible for managing multi- jurisdictional VAT registrations, compliance and reporting – with expertise and ability to assist on VAT matters in over 50 countries around the world. Vatglobal runs all of its compliance services out of one office in the UK, making it a true ‘one stop shop.’ The structure ensures that all compliance matters are handled under one central location thus providing a true centralised solution to clients.
The London based VAT compliance hub is supported by an extensive global network of offices and resources, supporting in excess of 16,000 clients in over 100 countries. These clients range from small and medium- sized enterprises to large multi-national corporations, across a wide range of sectors. That expertise is supplemented by digital tools, making compliance more efficient and error-free.
If you would like an introduction to Vatglobal, please feel to contact us and we are more than happy to make that introduction for you.
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