Importing from USA. What taxes will I need to pay?

Discussion in 'International Business' started by Slinkie, Jan 14, 2010.

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  1. Slinkie

    Slinkie UKBF Newcomer Free Member

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    Hi folks,

    If I order items from the USA to sell in the UK what taxes do I need to pay on them? The items themselves are phone accessories if that makes any difference.

    Thanks

    Matt
     
    Posted: Jan 14, 2010 By: Slinkie Member since: Sep 5, 2006
    #1
  2. MASSEY

    MASSEY UKBF Legend Full Member

    10,317 1,782
    Import VAT if the good total over £18 :rolleyes:
     
    Posted: Jan 14, 2010 By: MASSEY Member since: Nov 29, 2009
    #2
  3. Duke Fame

    Duke Fame UKBF Enthusiast Free Member

    813 87
    And duty, your forwarder usually pays this and bills you (or if he doesn't trust you, you pay when he releases your goods)
     
    Posted: Jan 14, 2010 By: Duke Fame Member since: Jan 28, 2008
    #3
  4. Slinkie

    Slinkie UKBF Newcomer Free Member

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    What are these rates? I just want to estimate how much items will cost and so can projected retail price and profit margins etc.
     
    Posted: Jan 14, 2010 By: Slinkie Member since: Sep 5, 2006
    #4
  5. dabpc

    dabpc UKBF Contributor Free Member

    30 6
    Yes, if sent by post (rather than courier), Parceforce won't release the goods until you have paid the VAT & import duty.
     
    Posted: Jan 14, 2010 By: dabpc Member since: Dec 24, 2009
    #5
  6. gibby

    gibby UKBF Ace Free Member

    1,246 120
    Ive not found a way to figure this out correctly.

    Last time we tried it, we orderd quite abit of stuff while the $ was low.
    We did spend some time on the phone to tha VAT office etc & got hit with VAT, a customs clerance charge & other fees for £200 on £500 worth of goods.

    30% of the goods were books but ended up paying VAT on these too.


    If anyone can give better info on these things I would help.

    G
     
    Posted: Jan 14, 2010 By: gibby Member since: Sep 11, 2007
    #6
  7. Mister B

    Mister B UKBF Ace Free Member

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    Assuming that the freight has already been accounted for, then you need to allow for VAT and duty.

    The VAT is pretty straight forward and the duty can be found by punching the tariff code into this little baby

    You can get the tariff code from your shipper or alternatively, the HRMC classifaction office. (Tel no. 01702 366 077)

    Watch out for hidden admin charges from the likes of DHL:eek:

    HTH

    Mister B
     
    Posted: Jan 15, 2010 By: Mister B Member since: Aug 31, 2007
    #7
  8. MASSEY

    MASSEY UKBF Legend Full Member

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    From setting a ltd company up and fluttering with many ideas im becoming rather irritated at the sheer costs the hmrc put upon people, you can see why the big companies have moved to tax free havens and have offshore accounts, the uk take the profit out of importing unless you have a massive budget.
     
    Posted: Jan 15, 2010 By: MASSEY Member since: Nov 29, 2009
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  9. Slinkie

    Slinkie UKBF Newcomer Free Member

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    Thanks for all of the replies so far. I am struggling to find the tarriff code that relates to phone accessories so am still a little bit in the dark. I will keep looking but if anyone with more experience knows of it or can find it easier than I can please let me know.

    One more thing, I am not as yet VAT registered so I presume it is only the import duty I would be paying on the items when I import them?

    I just want to be able to work out final selling price of the products so I can cover all of the costs.

    Matt
     
    Last edited: Jan 16, 2010
    Posted: Jan 16, 2010 By: Slinkie Member since: Sep 5, 2006
    #9
  10. MASSEY

    MASSEY UKBF Legend Full Member

    10,317 1,782
    You will still pay the VAT.

    Not being vat registered just means you can not claim it back by charging Vat on your items when you sell them,

    Ideally when selling goods you should be Vat regisered, you can opt into vat registration any time you like, When you earn over 67000 in a year they will force you to be vat registered.
     
    Posted: Jan 16, 2010 By: MASSEY Member since: Nov 29, 2009
    #10
  11. Slinkie

    Slinkie UKBF Newcomer Free Member

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    I haven't really thought much about being VAT registered as this is just a small venture outside of my day job. With having to pay VAT on imports is it preferencial to be VAT regerestered and so charge VAT on the items I sell?
     
    Posted: Jan 17, 2010 By: Slinkie Member since: Sep 5, 2006
    #11
  12. Slinkie

    Slinkie UKBF Newcomer Free Member

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    Sorry about this I can't seem to edit my above post to add in an additional question.

    Duty is paid on any item worth over £18. Is this based on each item worth over £18 or it is just based on a total consignment.

    For example. I import 2 items that are worth £5 and two items that are worth £50. Do I pay duty on £110 (ie the total consignment value) or do I pay duty on £100 (as only two of the items are worth over £18).

    Thanks

    Matt
     
    Posted: Jan 17, 2010 By: Slinkie Member since: Sep 5, 2006
    #12
  13. big bad bernie

    big bad bernie Guest

    15 3
    Your local business gateway usually host meetings with HMCE present,
    they give impartal advice
     
    Posted: Jan 17, 2010 By: big bad bernie Member since: Jan 17, 2010
    #13
  14. PhilBB

    PhilBB UKBF Newcomer Free Member

    7 1
    Can you list the actual accessories here for us to help on duty rates? Rates are driven by commodity codes. Commodity codes depend on the tariff classification of the goods. Therefore what the specific goods are is key in getting to the rates of import duty.

    Best regards
    Phil
    Quadrel
     
    Posted: Jan 17, 2010 By: PhilBB Member since: Jan 17, 2010
    #14
  15. Slinkie

    Slinkie UKBF Newcomer Free Member

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    It'll mostly be phone covers (plastic and leather) along with a few items like wires and docks etc.
     
    Posted: Jan 17, 2010 By: Slinkie Member since: Sep 5, 2006
    #15
  16. Slinkie

    Slinkie UKBF Newcomer Free Member

    69 0
    Hi,

    Can anyone answer me this as I am still a bit unsure of how it works.

    90% of the items I will be importing are worth less than £18. Does this mean they are exempt from duty? Or is duty paid on the total amount eg. If I ordered 30 items costing £10 each, would I be exempt from duty as the items are less than £18 or would I pay duty on the £300?
     
    Posted: Jan 18, 2010 By: Slinkie Member since: Sep 5, 2006
    #16
  17. Slinkie

    Slinkie UKBF Newcomer Free Member

    69 0
    I folks,

    My first delivery of stock arrived this morning but I am a bit confused. I took delivery of it but haven't paid any duty or VAT. I just had to sign for the package. I haven't had chance to open the package and check the contents yet as I had to leave the house to get to my 9-5. Will I still have to pay these fees or have I somehow avoided them? I would have thought that I would have to pay for them at the depot (the package was delivered by parcel force). I don't mind paying the fees (I had factored them into my resale price) but I want to know if I will be stung for them at a later date? How does this usually work?


    Cheers

    Matt
     
    Posted: Feb 1, 2010 By: Slinkie Member since: Sep 5, 2006
    #17
  18. dabpc

    dabpc UKBF Contributor Free Member

    30 6
    Sometimes parcels seem to get thought without being flagged for duty.
     
    Posted: Feb 1, 2010 By: dabpc Member since: Dec 24, 2009
    #18
  19. Slinkie

    Slinkie UKBF Newcomer Free Member

    69 0
    Am I to assume since I have received the package and haven't paid any duty etc on it I won't be charge retrospectively for these goods? Can you get charged after delivery or if you are charged do you pay on delivery?
     
    Posted: Feb 1, 2010 By: Slinkie Member since: Sep 5, 2006
    #19
  20. lss

    lss UKBF Newcomer Free Member

    206 9
    can you claim any of this back from the tax man?
     
    Posted: Feb 1, 2010 By: lss Member since: Jul 27, 2009
    #20
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