If you import goods into the UK, you will generally be liable for import VAT. Following Brexit, that is also the case for companies based in the EU. Previously UK-EU trade was not subject to import VAT or customs duties.
Import VAT and customs duties pose a significant additional cost on imports. They also create cash flow pressure, as these additional costs are often paid at the point of entry.
Fortunately, importers can take advantage of mechanisms that overcome these issues. In order to do so, however, they need to register for UK VAT.
Registering for VAT obviously creates certain obligations, such as the requirement to file regular VAT returns. However, for many importers, the benefits will outweigh the inconvenience. Moreover, a professional VAT service can manage VAT registration and compliance on your behalf.
Source VATglobal
Latest Posts in "United Kingdom"
- UK VAT Gap Rises to £11.9bn in 2024–25, HMRC Reports 6.5% Shortfall
- Luzha v HMRC: VAT Late Submission Penalties Upheld, No Reasonable Excuse Found, Appeal Dismissed
- VAT Repayment Appeal: Validity of Invoices and Alternative Evidence under Regulation 29(2) Considered
- Tribunal Upholds VAT Assessment: Cattle Management Services Deemed Single Standard-Rated Supply, Appeal Dismissed
- UK Supreme Court Rules Input VAT on Share Sale Professional Fees Irrecoverable for Holding Companies
