Importing computer equipment from the US for use in our company

[ldjames]

I would like to purchase computer equipment for use in our company. The vendor has separate websites that cater to the UK market and to the USA market. We are able to access a substantial discount on the USA website, which should save us a lot, even considering the need to fork out a bit more for international shipping etc.

We are a VAT-registered company in the UK. We have a virtual address in the USA. The USA vendor is shipping/billing our UK company with the USA address. The item is arriving at the virtual address and we can tell the company operating it how we would like it to be forwarded (which carrier/service, whether to add any documents to it etc.)

I can't seem to find a dummy's guide to what we need to do to reclaim the VAT on it when it arrives in the UK - it seems like there are various schemes. Can we include some paperwork with it so that we don't have to pay VAT at all? Failing that, do we just ship it to our UK address, have wait for the card from customs to say that they're holding it until we pay 20% VAT, pay them and then use the paperwork that customs attach to the package as the papertrail to support claiming the VAT back in our normal return? Is there anything else we need to do?

Will it be a problem if it's being shipped from our company with USA virtual address to our company with a USA physical address (i.e. if the sender and recipient are the same entity)?

 

[Scalloway]

HMRC will expect you to pay VAT when it arrive in the UK. They will send you a certificate C79 which is the document you need to reclaim the VAT through your VAT return. More information here.

https://www.gov.uk/guidance/importing-goods-from-outside-the-eu#taxes-and-duties-on-imports

 

[ldjames]

So the only additional paperwork is what HMRC send me - that's what I needed to know, thanks. If we were to do this more often, is there anything simple we can do to eliminate the delay of HMRC holding it and sending us a request for payment by paying them in advance?

 

[Scalloway]

From farther down that page

https://www.gov.uk/guidance/importing-goods-from-outside-the-eu#defer-or-delay-import-charges

Defer or delay import charges
Imported goods aren’t normally released by customs until you’ve paid duty and VAT. If you import regularly you can set up a deferment account with HMRC, allowing you to pay monthly in arrears. To apply for a deferment account you have to provide a Customs Guarantee from a bank, insurance company or building society.

 

[The Byre]

Just make sure that the universal PSUs can deal with 240V. Some can and some just say that they do!

 

[YahBuilds2018]

What about Import Tax? I have started up a Computer Business, and so far selling parts within the UK and within the US via a Sister Partner Company I am working in collab with.

I have price list of stock from a U.S Distributor, and price is much lower than U.K.

I am not chasing the idea of buying stock from the US as I believe I will pay for import and taxes.

Would I be able to claim back the full amount of fees paid on import?

 

[Scalloway]

Would I be able to claim back the full amount of fees paid on import?

No. You can only reclaim VAT, assuming you are VAT registered

 

[ldjames]

Thanks for breaking it down @Scalloway. The wording on the HMRC site is clearly intended for people with more knowledge on the subject than me.

@YahBuilds2018: in your situation I would strongly recommend registering for VAT, importing and trying to streamline the process as much as possible (e.g. trying to forecast demand a few weeks in advance so you can use cheaper/slower couriers). Depending on the type of equipment and quantity, importing from the far east can make more sense. I know a few companies that import from Supermicro distributors in Taiwan and save a lot of money - it's not for the fainthearted though.