vat and importation tax

[Graham w]

hi

 

any equipment imported from the states to the uk is hit by duty of around 3% and vat @20%.

 

can you claim the vat amount or is it gone forever?

 

thank you

[waterbuoy]

Not sure about the VAT from a US perspective, but you definitely cannot reclaimfrom HMRC on your quarterly return.

 

If unable to claim/avoid paying in the US (as for export) then the whole amount can at least be offset for tax purposes.

[Graham w]

further digging from a random accountants website,

 

 

The United States has a system of sales tax that is charged at the state level rather than at the federal level. Most states choose to charge it, and the rate varies considerably, from 1% to 16%. However, this should not be added on goods that are exported from the USA into the UK. Instead, UK VAT at 20% is normally paid on import, and a UK VAT-registered business can reclaim that same amount from HMRC by including it as input VAT in box 4 of their regular VAT return, subject to the normal rules about recovering input tax.

 

 

is this about right?

[Graham w]

Not sure about the VAT from a US perspective, but you definitely cannot reclaimfrom HMRC on your quarterly return.

 

 

this is where it gets confusing

[richy_B]

You can reclaim the VAT element provided you are registered. You cannot reclaim DUTY. The US retailer should not charge you sales tax as you are exporting, you just need evidence it will be exported immediately.

[Stubby]

You also get a " handling charge " from customs .

[better dayz]

You can reclaim the VAT element provided you are registered. You cannot reclaim DUTY. The US retailer should not charge you sales tax as you are exporting, you just need evidence it will be exported immediately.

 

You can't import unless your vat registered

 

Also you need an EORI number

[Nick Connell]

Iam just importing a new boxer from the US. It has a duty rate of 1.7% as it comes under forestry machinery in the HS Tariff code. You get charged the vat when it hits the uk which can be claimed back. You also pay duty on the cost of shipping and insurance. Hope this helps

[richy_B]

I am 99% sure you don't need to be VAT registered to import an item. What are you basing that on?

 

You register for a EORI numbers. Simple process and takes less than a week to get it.

[Nick Connell]