When partaking in an Importing and exporting, it’s important you follow the right rules and
regulations. You need to ensure you pay the right amount of VAT, and when importing, the right
amount of import duty.

Since 2021, businesses in the United Kingdom have had to rethink their imports and exports.
Following Brexit, Britain, Wales, and Scotland are following new customs strategies when
exchanging with the EU, and moving merchandise to Northern Ireland.

Imports

Import VAT is a tax paid on goods purchased from another country outside the European Union.
Import duty is based on the type of goods you are importing, the country they originate from and
their value. If you import goods into Great Britain from outside the UK or from outside the EU to
Northern Ireland you may have to pay import VAT on goods. These are normally charged at the
same rate as if they had been supplied in the UK. But if you import works of art, antiques and
collectors’ items they’re entitled to a reduced rate of VAT.

VAT-registered businesses can account for import VAT on their VAT Return by using postponed
VAT accounting. Accounting for VAT on your VAT Return in this way allows you to declare the import
VAT and reclaim it as input tax on the same VAT return. Alternatively, a business can choose to
pay import VAT on importation. If you choose to do this, you can reclaim the VAT incurred on the
imported goods you own as input tax subject to the normal rules.

If you’re a UK trader and not registered for UK VAT you still have to pay the import VAT, but you
will not be able to reclaim it.

Exports

If you sell, send or transfer goods out of the UK you do not normally need to charge VAT on them.
You can zero rate most exports from Great Britain to any destination outside the UK & Northern
Ireland to a destination outside the UK and EU. You can zero rate the sale, as long as you get and
keep evidence of the export, and comply with all other conditions. You must also make sure the
goods are exported, and you must get the evidence within 3 months from the time of sale. This can
be longer for goods that need processing before export