Vietnam to UK and EU shipping

[Tombatts1927]

Hi all,

I'm in the process of setting up my small online e-commerce business that requires me to ship clothing items from Vietnam to the UK and EU. I am a complete beginner to this, my question is- what taxes do I need to pay when shipping these small items to the UK and EU? I can't seem to find a straight answer anywhere, if someone could explain it in lamens terms for me I would really appreciate it!!!

Thank you in advance!

 

[Tombatts1927]

I should maybe have clarified- the products would be posted to customers within the UK and EU- the actual stock would be held in a warehouse in Vietnam. If anyone has any experience with this, I would really appreciate some help

 

[Customs Geek]

There isn’t a single answer so you will need to consider a few things about how you want to operate.
You will need to decide who is going to be the declared import you or the end customer.
You will also need to decide who will be responsible for actually paying the import taxes. Customers are generally not happy about getting a request for taxes and may refuse the shipment.
If you use one of the courier companies for delivery they will sort out the customs declarations as part of their shipping fees.
Local import VAT will be due and possibly import duty.
There is an import duty relief for goods in a single shipment below €150 in the EU and£135 in the UK.
There is no import VAT relief.
Import duty is usually due on shipments above this value. It may be possible if the goods are manufactured in Vietnam and qualify under the EU or UK trade agreement and you have the correct documentation that duty would be reduced.

You also need to consider customer returns which is very high for clothing.

There will also be business taxes or self assessments for personal tax but this is not my area of expertise so I can’t give you any more help on that.

 

[S.C.A]

That doesn't sound like a feasible business idea. Unless there is a zero tariff on apparel trade deal between the UK/EU and Vietnam customs declarations must be made.

Customers won't want to be bothered by this admin and cost

 

[Customs Geek]

That doesn't sound like a feasible business idea. Unless there is a zero tariff on apparel trade deal between the UK/EU and Vietnam customs declarations must be made.

Customers won't want to be bothered by this admin and cost

Having a trade deal makes no difference whatsoever to the requirement for a customs declaration. All goods coming into the uk require a customs declaration of some sort including postal shipments.

There is a trade deal with Vietnam for both the UK and EU but like all trade deals there are strict requirements for goods to meet the product specific rules and also documentary proof requirements. Entitlement to reduced or zero duties would not apply to just anything consigned from Vietnam.

The OP also needs to consider the special VAT rules in the UK and EU for goods below the €150 or £135 thresholds.

 

[Customs Geek]

www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk

 

[S.C.A]

Having a trade deal makes no difference whatsoever to the requirement for a customs declaration. All goods coming into the uk require a customs declaration of some sort including postal shipments.

There is a trade deal with Vietnam for both the UK and EU but like all trade deals there are strict requirements for goods to meet the product specific rules and also documentary proof requirements. Entitlement to reduced or zero duties would not apply to just anything consigned from Vietnam.

The OP also needs to consider the special VAT rules in the UK and EU for goods below the €150 or £135 thresholds.

Re trade deal: I meant whether tariffs were applicable or not. If they are, OPs model won't work.