Responsibility for import duty & VAT

[Sabex]

Hi
I am looking into doing the following: importing fruit from a farm in a non-EU country to sell to a UK wholesalers. I am not a middleman & am essentially affiliated with the farm. As I understand it, because I am responsible for the goods at the point at which they come through customs, I pay any import duty/VAT payable.
Is this the normal model for international food importing?
Thanks

 

[GraemeL]

Hello Ted, I dont think food is any different from any other import regarding who pays the VAT and duty. The organisation whose name is on the Packing List/Invoice B/L is liable to pay, though an agent might be authorised to pay it on behalf of that organisation - for example the freight forwarder.

G

 

[Sabex]

Thanks, I see. So I pay VAT/duty, then am obliged to charge VAT to the wholesaler at the point of purchase?
Sorry if obvious, very new at this

 

[GraemeL]

Not quite clear what you mean, so I may be going in the wrong direction.

Whose name will appear on the shipping documents as the recipient of the goods in the UK?

This named organisation must pay the VAT and they must pay it direct to HMRC in the UK at the time of import before it will clear customs.

The exporter, from say Russia, does not charge VAT to anyone in the UK.

Does that make more sense?

G

 

[Sabex]

Right, so if I (or the farm) is the named recipient at the point of entry into the UK, I pay the VAT/duty. If the wholesaler to whom I am selling is the recipient, they pay.
In the former case, if I take receipt of the goods and then sell them to a wholesaler once they are in the UK, presumably I need to be VAT registered and charge the wholesaler standard VAT?
Thanks for the help

 

[GraemeL]

presumably I need to be VAT registered and charge the wholesaler standard VAT?

The practical answer is yes, as if you don't do so you will be paying VAT and not recovering it.

In absolute terms you don't need to register (unless you exceed the t/o requirement), nor charge your customer VAT. But that would be silly.

Might we worth bearing in mind that more cash is needed if you import the goods, as VAT is payable immediately. I expect you would give your customer some credit terms which means they would not pay the VAT to you immediately.

G

 

[benni]

AFAIK, the VAT rate on fruit is 0%, so you would not be charged VAT by HMRC on import nor would you be allowed to charge VAT to whomever you sell it on to.

If goods are sent DDU (Delivery Duty Unpaid), the importer of record (as listed on commercial invoices) would be responsible for paying the duty. The importer can be different from the consignee - the person who receives the goods in the UK.

 

[Sabex]

Thanks very much for your help guys.
I've just done some more research, and a site called "duty calculator" mentions a sales tax of 18% on goods from Turkey... Do you know if this would apply??

 

[Sabex]

Thanks for the help guys. I have been doing some more research & a site called Duty Calculator states Sales Tax is payable at 18% on goods imported from Turkey? Any idea if this is correct?

 

[Sabex]

Bump.............