There are some key points and strict rules to remember if you choose for your business to trade internationally. At some point you will probably find your company paying UK customs duty and VAT.

By making sure you understand which VAT and duty parts apply to your business will help you plan ahead for charges and have no nasty surprises. If you do find yourself importing goods there will be a following article which will explain the advantages of deferring import customs duty and VAT and also tell you how to get all this VAT back to offset.

Always keep in your mind that Vat on Exports and imports is very complex so doing your homework could save you a lot of time and money. The best advice I can give is if there is anything you are unsure of regarding your business vat and duty charges you can always contact the HMRC for free advice via their national advice service.

Keep an eye out for my other articles in this series of import advice as I will be explain the pros and cons of importing in plain English making the minefield of importing approachable by providing you with map advice, help and where to find information. Doing your homework at the early stages of setting up your import business will save you much time and money as I learnt the hard way by running before I could walk. Keep your faith in importing even if it seems hard at first as it is a Multi-Billion pound business and there is a slice for you!



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If you use the rule that most imports have to have VAT added to them, just as if it was an item supplied within the UK.

Also keep in mind that VAT is handled in different ways and the big decider in this matter is whether the imported goods are imported from within the European Union or outside the EU. A point to remember and can be to your advantage if some goods are already in free circulation in any EU country this meaning that duty and VAT has already been paid (sometimes a lower rate than the UK) you should not have to pay anymore charges shipping them into the UK.

Remember goods are always treated as imports if they have come to UK direct from a non EU country or from an EU country with no VAT or duty already being paid (not being released for free circulation). You will then have to pay duty and VAT. Check out the HMRC website for info on this and what countries are included in the EU for VAT purposes HMRC Website.

You will normally have to declare to the HMRC any goods you import and pay the applicable duty and VAT. The best way to start this process is to phone HMRC national advice number on 0845 010 9000. Please note duty and VAT must be paid to the HMRC before any imported goods will released by customs.


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You will find that import duty is worked by a number of factors, these being the type of goods, country of origin and their value.

If you need details about VAT rates I advise you HM revenue and Customs on 01702 366077 this will put you through direct to their tariff classification service department. If the goods have come from inside the European Union (EU), no duty will be payable by yourself, Unless the items are tobacco or alcohol as these will be charged even within the (EU).

If the items you are importing originate outside of the European Union and duty has been paid on them in another EU country before being delivered to you, once again you will have to pay no duty charges.

If you find that the goods you are importing have not paid any duty in any other EU country and the goods have come from outside the EU you will need to pay duty. If you find yourself in this situation you will need to calculate the value of the goods there 6 ways to do this. If you find method 1 does not work the move onto the 2nd and if no joy the 3rd method and so on. The HMRC will show you how to calculate duty at HMRC WEBSITE DUTY HELP.

Please remember duty cannot be reclaimed unlike Value Added Tax . So even if you are a registered company that is VAT registered in the UK you still cannot reclaim the VAT element.


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