Import Tax Consultant

Professional Import Tax Services

Here at golden biz Limited, I can help you reduce your import tax costs by offering a range of effective and ethical import tax planning and problem-solving solutions. I have assisted clients from across the UK and abroad, drawing upon a wealth of import and export expertise to provide advice on import tax matters, helping clients save money while achieving their business goals.

I understand that corresponding with HM Revenue and Customs (HMRC) can be daunting and sometimes confusing. I will support you throughout the import process and provide support to ensure compliance with HMRC obligations. I will also prepare or assist with necessary documentation and will keep you updated throughout the whole process.

With over 30 years’ experience of providing import tax advice, I offer tailored and structured support to assist with your import activities.

Reducing Import VAT and Duties

Import VAT and duties are very important in international trade. Unfortunately, many companies and businesses pay more Import VAT and duties than is required by law. This could affect the landed cost of the imported goods and impact profit margins. As an independent consultant, I can provide a variety of ways that you can reduce customs Import VAT and duties. These are some examples of ways you can reduce the impact of import taxes on your business:

Identify the correct tariff that applies to your imports.
Maintain detailed import records and ensure the correct paperwork is presented to HMRC.
Identify the correct build-up of costs that will attract taxes and those that will not.
Take advantage of preferential trade agreements (if applicable) to reduce or eliminate duties and taxes altogether on your imported goods.
Utilise HM Customs special procedures that will enable you to pay a reduced amount of duty and import VAT.
Reduce cash flow by using Simplified Import VAT Accounting (SIVA) for your imports.

How To Pay Import VAT And Duties

You can pay Import VAT and Customs Duties to HMRC in several ways:

Pay at the actual time your products enter the UK via the Flexible Accounting System (FAS).
Using the new cash accounts for Customs Declaration Service (CDS) to cover import declaration payments, which will replace the current Flexible Accounting System.
By using deferred Import VAT and duty payments when you import goods or release goods from a bonded warehouse.
By using Postponed VAT Accounting (PVA) which lets you declare and recover import VAT on your VAT Return.

What is the Flexible Accounting System (FAS)?

The Flexible Accounting System (FAS) let’s your company pay Import VAT and Duties at the time when your goods move across the border. HMRC accept payments by bank transfer, guaranteed cheque or bank draft.

FAS is an accounting sub-system which can be used to process import entries through a computer terminal linked to the Customs Handling of Import and Export Freight (CHIEF) system. CHIEF is being replaced by the new Customs Declaration Service (CDS) and your company will be able to use Cash Accounting to pay your Import VAT and Duties. The Flexible Accounting System will not be available after CHIEF is replaced by CDS.

What are Cash Accounts for the Customs Declaration Service (CDS)?

CDS

Tax

Customs Declaration

What are Deferred VAT and Duty Payments?

Vat and Duty payments

If your company uses the Customs Declaration Service (CDS), you can use cash accounting to pay for your Import VAT and customs duty. Your company can make payments into your cash account and authorise your clearance agent to use the account to pay Import VAT and duties.

Your company will have to be registered for CDS to use a cash account. Once your company is registered, you will automatically get a cash account. Your company can view your account and manage who has permission to use it in your customs financial accounts.

Having a Duty Deferment Account lets your company make one payment a month for Import VAT and Duty by Direct Debit instead of paying for individual consignments. Your company can apply for a duty deferment account if you are an importer, someone who represents your company or if your company is releasing goods from a Bonded Warehouse.

There are new rules for duty deferment that apply in Great Britain (England, Scotland and Wales). Your company may not need a financial guarantee for your duty deferment account. If your company requires a new duty deferment account to use in Northern Ireland, you will need to apply for a Customs Comprehensive Guarantee.

If your company is not using Postponed VAT Accounting and is paying Import VAT via the Deferment Account, you will need to claim Import VAT as input tax on your VAT Return.

What is Postponed VAT Accounting (PVA)?

P V A

Postponed VAT Accounting (PVA) lets your company declare and recover Import VAT on your VAT Return. Accounting for Import VAT on your company’s VAT Return has significant cash flow benefits for your business. It means your company will declare and recover import VAT on the same VAT Return, rather than having to pay it upfront when the goods are imported and recover it later.

If your company is registered for VAT in the UK, you can account for import VAT on your VAT Return for goods you import into Great Britain and Northern Ireland. You can also account for Import VAT for goods your company move between Great Britain and Northern Ireland via a customs special procedure, such as:

customs warehousing
inward processing
temporary admission
end use
outward processing
duty suspension contact now for more about Postponed VAT Accounting (PVA)...

Import VAT Blogs & Case Studies

Read my Import VAT Blogs and Case Studies to see how I have worked side by side with clients to tackle different import tax challenges. In each case, an appropriate solution was identified, developed, and implemented to manage import VAT.

Duty and Tax Management

An important commercial consideration for businesses importing goods is their supply chain costs, which include duties and taxes. Importers do not always take full advantage of import procedures that can reduce or eliminate duties and taxes altogether on imported goods. The incorrect classification of imported goods can result in duties being paid incorrectly or the advantages of preferential trade agreements not being realised.

Depending on what you intend to do with your imported goods, you may reduce or eliminate duty and import VAT payments.

Importing samples, professional equipment, exhibition goods and demonstration goods temporarily into the UK will not require any duty or VAT payments.
Many imported medical or scientific goods are not dutiable and many are zero rated for VAT.
You can claim import duty and VAT relief on goods for commercial research.
You may not need to pay duty on free circulation goods you have exported and then re-imported.

If you are importing goods for processing or repair prior to re-exporting them, then you can use Inward Processing to reduce or avoid import duty and VAT payments. Let's take a look at Inward Processing (IP) in more detail.

What is Free Circulation?

Goods are in free circulation when import formalities have been fulfilled and the goods have been cleared by customs, duties and taxes have been paid and the goods are without any customs restrictions.

What is the definition of Processing?

HMRC state that processing can be anything from simply sorting or repacking goods up to the most complicated manufacturing.

What is the definition of Repair?

HMRC state repair is when goods are restored to their original working condition, but do not improve their performance. If you want to claim relief on goods for repair, you need to expect the goods to be repairable. This means they cannot be things like minerals and chemicals. You can import or export goods for repair.

What is Inward Processing (IP)?

IP is a duty suspension procedure, which enables UK businesses to import goods for processing or repair and to re-export them without paying import duties and taxes. Also, under IP you can postpone paying any excise duty on the imported goods you are processing. If you decide to keep some or all the imported goods within the UK and place them into free circulation, then duties and taxes will be applicable. However, due to the processes conducted on your goods you may pay a reduced amount of duty and import VAT than was originally due on the imported goods.

For some business sectors, such as telecommunications, IP can be an essential consideration as they regularly receive products that require repair, servicing or calibration. The use of IP relieves these businesses of any customs duty payments and avoids potential VAT issues.

Who can apply for Inward Processing?

To use Inward Processing, you will need to apply and you will need:

to be established in the UK
an Economic Operator Registration and Identification (EORI) number
to check if you need a guarantee
to check if you need an import licence

Inward Processing Authorisations

HMRC have four types of inward processing you can apply to use:

full
retrospective
by declaration
authorisations covering Northern Ireland and the EU

Further assistance with Inward Processing

I can provide further advice and guidance with all aspects of Inward Processing, including how to reduce your duty payments. For more information, please contact goldenbizconsultancy.com

Claiming Relief from Import Duties and Taxes

WHATSAPP NOW