The amount of import VAT and duty payable upon clearance into the UK is dependent on three factors. Firstly the percentage of import VAT and/or duty is dictated by the commodity code (sometimes also known as a tariff code) that the goods are being declared to UK Customs as.
The percentage for import duty is applied to the amount for freight, insurance (if any) and the value of the goods. The percentage for import VAT is applied to the CIF value, plus the duty amount, and a minimal amount added as an adjustment (known as a VAT adjustment charge). This calculation is dictated by HMRC. If you are feeling lost, do not worry, your customs clearance agent will do all the sums for you.
Generally, your supplier overseas will provide you with the tariff code for your import goods. If it is not on the commercial invoice, then you can ask them to provide it. Alternatively you can classify the goods using HMRC’s tariff.
This can also be checked on HMRC’s online tariff, simply enter the commodity code and the country that you are importing from. If there are special tariffs applicable due to a trade deal with that country (such as the UK-Australia and New Zealand trade deal), then the online tariff will reflect this.
If you are looking for a UK based customs clearance agent to handle a one-off clearance, or regular customs clearances for your company, then contact our import department. We will be glad to provide you with a quote for customs clearance, and onward delivery if required. Mercator has been in business for over 30 years, we have badges at the major ports which means we handle the clearances in house. Our import department are furnished with the latest software, up to date knowledge and relevant experience to handle customs clearances efficiently and accurately on behalf of our customers.
You can contact our import department by emailing sales@mercatorcargo.co.uk, calling (+44) 02392 756 575 (we are here 9-5 Monday-Friday), or complete the form below and someone will be in touch.
If you have not imported goods into the UK before, you may be wondering how import VAT and duty works.
How much VAT and duty will I need to pay?
HMRC uses a ‘tariff’ to determine the rate (a percentage) of VAT and duty that needs to be paid on customs clearance. This means that the rate is dependent upon what your goods are, and their worth. Take a look here: https://www.gov.uk/trade-tariff. Our team of freight forwarders will classify your goods when we handle your shipment and/or customs clearance, calculate the amount payable, and handle payments to HMRC (if required).
Who is responsible for paying for the VAT and duty?
You, as the importer, are responsible for settling any VAT and duty payable upon your goods arrival in the UK. Your goods will not be released from customs until this is settled. Most of our customers opt to use us to clear their import through customs. Our standard procedure is to calculate the rate of VAT and duty payable, an invoice is raised for this amount, once funds from our customer has cleared into our account, we forward the payment to HMRC with the necessary release instructions. Customs clearance is required for both air and sea imports.
Can I claim back VAT and duty?
If you are VAT registered, then you should be able to claim back any import VAT (not duty). To import into the UK you will require an EORI number (Economic Operator Registration and Identification). This is a straight forward process of filling in a form, you should receive your EORI number within a week. We can assist you with this if required.
Give us a call to discuss Mercator Cargo handling your shipment, or UK customs clearance and delivery. Our team of freight forwarders deal with UK clearance and delivery, and international shipping on a daily basis – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
10, St George’s Business Centre,
St Georges Square,
Portsmouth, PO1 3EZ, UK
Mercator is a family-run, UK based independent freight forwarder, offering highly effective sea, road and air freight services around the world.
