Import duty and VAT

[tcq2005]

I have received a shipment of 3000 USD from my Indian supplier by courier and also paid 1000 USD for the courier charge to my supplier, but I haven't been received any invoice asking me to pay import Duty or VAT. Is there a new arrangement between UK and India that we don't have to pay import duty or VAT for imported goods from India? I don't know the commodity codes, I am not sure sure if I need to pay import duty and VAT for them.

If I do, what is the best way to pay the duty? I don't have duty deferment account and I can't clear customs myself.

Many thanks.

 

[Customs Geek]

No there’s no new arrangement between UK and India that means you don’t pay import duty or VAT.
If you have received the package it must have already been declared to customs by the courier
There are several things that could have happened but I can’t guess why you weren’t charged prior to delivery. Customs don’t send out invoices as everything must be paid before the goods can be delivered. I suggest that you speak to either the supplier or the courier or both.
1. The 1000 USD sounds high so it may also be to cover the duties and taxes - check what the agreed terms were. Did they say you would be responsible for the taxes or was it delivered duty paid.
2. The courier may have paid the taxes for you and you will receive an invoice later.
3. The goods may have been misdescribed or undervalued . If customs find that’s happened they can ask for additional taxes.
4. The goods may be duty free irrespective of their origin and the courier has used postponed VAT accounting. This may happen if you are VAT registered.

 

[Shipping Guru]

As with so many of these threads, Customs Geek is on the money.

To add something from my side. 1000 is super expensive for shipping. Also who is auditing your paperwork?

<self promotion removed>

 

[AmazonGeek]

It is quite common for suppliers in China, India, Turkey, etc to quote you a price that 'includes VAT, duty, etc'. One of my clients had this recently - an all-in quote from his supplier that was a lot cheaper than buying the goods and shipping them separately. A few months later and he needs to supply Import Entry Numbers (IENs), which the shipper would normally have. It turns out the factory massively underdeclared the value to get the VAT down to almost zero. Their solution...? To supply fake documents instead - for $25!

He is now having to put all this right with HMRC. The moral - check that everything is legitimate as this is not uncommon.

 

[cockypea]

Hey, just chiming in because I had a very similar situation not long ago – also from India, also courier, and I was left scratching my head when no VAT or duty demand showed up.

From what I found out, it's not that there's some magical new trade deal (wouldn't that be nice), but more likely the courier company handled the customs clearance and just hasn't billed you yet. Sometimes they lump it all into one post-invoice or send it via email and it lands in spam. Happened to me once – found a customs charge buried in a DHL email two weeks later.

Also, the commodity code really does matter. Without it, it's a shot in the dark whether there's duty or not. I ended up calling the courier's customs team directly, and they were surprisingly helpful. You might want to try that first.

As for paying, if you don’t have a deferment account, they’ll usually collect it upfront before delivery or send a bill after. No need to panic yet – but I’d definitely chase it up before they chase you.

 

[Majid Paracha]

Not sure if this is relevant here, but how long does it usually take to get a VAT number for a new company in the UK? Also, is it better to apply on your own or hire someone to file it for you?

Thanks in advance.

 

[cockypea]

Not quite the same topic but I get why you’re asking it here. For me the VAT number took anywhere from a week to… well, longer when HMRC felt slow, so there’s no real pattern. Doing it yourself is fine if you don’t mind the forms, just keep all docs ready or they bounce it back. If you’ve got someone who’s handled this before, ask them – saves nerves. What kind of setup are you running, import or services?

 

[Majid Paracha]

Thanks for sharing your experience that helps. For us, it has been few weeks already. We have been following up with the company we applied through, and as per them, they are waiting for some code from HMRC. We are in the import-export business, mainly focusing on food ingredients, and we are also developing our own brands. Hopefully, it will not take too much longer..

 

[cockypea]

Ah, food ingredients – nice. The wait for HMRC codes can feel endless, especially if you're not sure which bit is holding it up. Did they tell you if it's an EORI or VAT issue? Also curious: when you say developing your own brands – is that for B2B, or are you aiming at retail shelves too? That step changes the whole game.

 

[Majid Paracha]

Yes, the wait really does feel long. From the update we received, they are holding things because of the UTR. What I am not fully clear about is that we already have a UTR, so I am wondering if they need a different one or if it is just an internal process on their side. Once that’s sorted, they will move ahead with the VAT. Its been about a month now
And regarding the brand yes, we are developing it for both B2B and B2C. We are hoping to eventually get it onto retail shelves as well.

 

[Customs Geek]

Yes, the wait really does feel long. From the update we received, they are holding things because of the UTR. What I am not fully clear about is that we already have a UTR, so I am wondering if they need a different one or if it is just an internal process on their side. Once that’s sorted, they will move ahead with the VAT. Its been about a month now
And regarding the brand yes, we are developing it for both B2B and B2C. We are hoping to eventually get it onto retail shelves as well.

The UTR is a unique taxpayer reference so a company would only ever have one. I assume that as you are registering for VAT as a new company that the directors are not UK based or that you don’t have UK trading premises. If so registration takes longer as the company considered to be a non established taxable person ( NETP) .

 

[Majid Paracha]

@Customs Geek You are absolutely right that really clarifies things. May I ask what the next step is and how long the process usually takes from here?

 

[cockypea]

@Majid Paracha: Sorry for the slow reply – I was away for a bit. A month stuck on UTR usually means HMRC is matching records, not a new UTR, just delays. Annoying but common. Has anything moved since? And with B2B + retail in mind, how far along is the brand now?

 

[Majid Paracha]

@Majid Paracha: Sorry for the slow reply – I was away for a bit. A month stuck on UTR usually means HMRC is matching records, not a new UTR, just delays. Annoying but common. Has anything moved since? And with B2B + retail in mind, how far along is the brand now?

Yes, that is our understanding as well. We already have a UTR, so this appears to be an HMRC verification delay rather than a new allocation and we are doing it through a company. There has not been much movement yet it is still pending.

On the brand side, we are in a good position. The supply chain is ready, the products are developed and the branding and website are mostly finished. The products are already live on the website, but this is still a testing phase. We are almost done with the compliance also.

The main thing we are waiting for is VAT approval. Once that is done, we can start importing straight away. At the same time, we are deciding whether to launch first through B2B sales or by setting up an Amazon store for our own brand. We currently have around 8–10 SKUs of seasonings ready to launch (excluding Himalayan salt), so we are close to starting and mainly held up by VAT.

We are also open to all kinds of feedback and recommendations as we finalize our launch approach.

 

[cockypea]

That sounds frustrating, but also like you’re genuinely close. VAT delays often become the last bottleneck before things finally move. With supply, branding and compliance lined up, you’re well positioned. Once approval lands, momentum usually follows fast.

 

[Majid Paracha]

While the VAT delay is frustrating, it gave us time to refine our strategy and align better with partners.

We have now received our VAT reference number and based on current progress, we expect to start importing from early 2026.