If the sale has already taken place on Amazon, and I ship the product from my country to the final consumer in the UK, with VAT already collected and an EORI number in hand, what are my obligations? My intention is not to burden the customer with any additional costs. I wish to cover any potential import duties if customs imposes them. Will the presence of an EORI number facilitate the clearance of the package, allowing me to later invoice and pay directly to HMRC based on that record?
hello sir i want to get cargoo from china to uk amazon fullfill center which the best and cheap way ?is it take supplair freight farwadar or get arrange third party freight farwader? how i get the cheap freight farwader ? so which is the best way plz explain
Hello sir My name is Kripalsinh jadeja. I am from India . I am a exporter of Indian products I am searching buyers in UK. Can you help me regarding finding buyers.
Hey, in that situation you can claim that back. If your product was shipped via a courier then you should be able to claim a refund through them or alternatively directly with HMRC.
Hi Luca, very helpful video, thank you! I have a question, how do we calculate VAT and customs duty when we have different types of products in the same container that have different custom duty %?
I am going to courier my personal PC from USA to UK...AND IT LOOKS LIKE IM GOING TO HAVE TO PAY DUTIES!?!?!?! i should have paid extra luggage costs but was worried about it being chucked around by bagage handlers!!! Is their anyway i can just have it fedex/UPS/USPC to me with no duties?!?!?! It's crazy. Any help? Please?!
Hi Luca, thanks for the video! I am a seller based in Australia, and I am trying to figure out the costs (VAT etc.) for when I ship my products from Australia to the UK. As you explain in your video I will have to pay Import Duties and VAT when my products enter the UK. As an overseas business I will also have to pay VAT on my sales and I won't have the VAT free threshold. Does this mean that I will have to pay VAT when I import and also when I sell my products? Does this mean I would be charged VAT twice? Just trying to wrap my head around the cost implications to see if selling in the UK is actually viable for me, as this would be a huge expense. Thanks!! :)
Hello, we have not registered for VAT as do not reached to the threshold. Alibaba will charge VAT on purchase. I am dealing a DDP shipment from the supplier to UK. Will I be paying VAT once again when goods will enter in UK?
Hi ordered a watch from aliexpress and I am an international student in UK and I don't have a vat number and etc. I heard that I have to pay a tax and etc can you help ?
Hopefully by the end of this video you'll understand exactly how to calculate Duties & VAT when importing goods into the UK! P.S: It's important not to get confused between the incoterm 'CIF' and 'CIF Value' as these are two different things.
I did understand, I am about to start Amazon Fba , I’m learning everything step by step , i ordered sample of product, I paid for sample + shipping today got text message saying I have to pay £25 for import duties , sample cost me £30 including shipping , I was looking for information on import duties and I got lucky you just uploaded detailed video of Duties thanks a lot , But still I can’t understand why I been charged so much by dhl ,
Hey, did you want till the end of the video when I talked about hidden fees? It's likely they have charged you an admin clearance fee, which tends to be around 5% or £20, whichever is higher.
Luca Davenport yes I did watched whole video and I got that admin fee part as well they charged me £11 admin fee , Luca ur star very detailed video thanks a lot , you got new subscriber 👍🏼
Is there a way to reduce import tax when sending small items to countries outside the UK (german, Latvia ect). I don't seem to need to pay any import tax when shipping to the US? Does anyone know why this is?
Hi Luca. Great video. I'm still a little confused however. I just ordered my first shipment which was my supplier did through UPS. It made it through customs and has been selling for a month on AMazon so I believe that UPS paid the customs and VAT on my behalf. The UK gov people I spoke to on the phone said that unless I used Royal Mail or Parcel Force that I would always have to pay this kind of extra commision to the company. What I'm wondering is where your process in this video comes in? I have my commodity code but I don't understand when and how I'm meant to use it. Is there a particular form I should fill in and if so to whom should I send it to? Also, should I ask my supplier to use Royal Mail or Parcel Force? Not too sure if they go from China. I'm basically very confused and while I would like to use your process above I'm missing the steps to do it. Any help would be really appreciated. Many thanks, Seb
Hey, so it's not really a process that you need to do, this video is just to help breakdown and explain import fees. Normally either your freight forwarder or courier will pay the import duties and VAT on your behalf and then invoice you some time later and as mentioned at the end of the video they will normally charge you a small fee for paying up front on your behalf. You may still receive an invoice from UPS, give it a few more weeks. Also RM and Parcelforce don't ship from China.
@@LucaDavenport Hi, if you order through ups, fedex etc. you do not need to fill any forms before or after the shipping as you do when ordering bigger qty's?? just wait for the invoice and pay? if you ship directly to amazon how will they know as to where to send that invoice? thanks!
If your shipping your goods via express air shipping using a courier such as TNT, DHL, UPS etc, you/your supplier will need to attach a commercial invoice to the shipment. This invoice will include information about your supplier, the goods being shipped and you as the importer. It should include your EORI number and this is how the import is connected to your company. Of course if you book the shipping with a freight forwarder they know to invoice you as you are the one who's booked the shipping.
Hi sir I am going to UK from Pakistan I wana bring my 150 dollar worth beauty equipment facial machine , is any custom duty will apply on this product?
I have paid for a tester on alibaba do u get charged for this already paid VAT on check out am I expecting anything else to pay ? Even thow it was a low cost tester Item
If you are not VAT registered you need to pay both import duties and import VAT. If you are VAT registered, you can claim the import VAT back from HMRC.
Hiya! Brilliant video, but! I went to the HMRC, found my commodity code but there was no % next to it! Is it because HMRC have updated or is it because I'm looking on mobile? Thanks in advance!
Thanks for this video!!!! The UK is so vague with charges! Even after lots of research I knew about the handling fee and VAT, but not tariff tax. So many thanks! You have made things a lot easier by bringing all the info together. I don't know why royal mail and DHL don't make this obvious so it is less of a shock to people picking them up. It is quite scary paying a lot on an item from abroad, and not really know what else will be charged when it arrives. This also gives people proof of what to challenge if it feels like they have charged extra for no reason.
The courier admin fees do my head in. I dont want my customers getting a surprise fee to pay, and it seems SO MUCH when only buying lesser priced items. I still dont have the hang of it all, but this part feels make or break for importing from the eu to the uk. Is there somewhere i can get more info to understand this better?
Very informative, I'm assuming this is EXW purchases and not DDP, I normally purchase DDP but want to start claiming the VAT back rather than getting the supplier to pay the taxes.
Hi I just ordered drone form china bangagood irs cost 399£ amd they said( Please note that you are responsible for all import taxes and duties that may be charged when your parcel passes through Customs if you have not bought the tariff insurance.) Ans i don't know its is point to buy it The question its how much prapobly I need to pay If its arrived? I WAS UNABLE to buy it insurance tariffin on website I hope you can help me thanks!
Alibaba is also charging me VAT. So I'm paying import VAT (via DDP) and also VAT to alibaba. I'm not VAT registered so i can't claim these back. Is there a way to avoid paying VAT to alibaba?
Nope, not unless you are VAT registered. But that is why I wouldn’t recommend using DDP. Instead use your own freight forwarder and they will be able to avoid you paying import VAT if you have already paid VAT on Alibaba.
I have just watched the video which was fantastic and made the whole process much clearer. Just one query, we are VAT registered so I presume that the VAT that we are charged on the good imported, we can then claim back at the end of our VAT quarter? This would then reduce the unit cost of each item. Regards
Glad it helped! Yes exactly, if you pay import duty at the time of import, you can claim this VAT back when you do your VAT returns. Alternatively you can join the governments new "PVA" (postponed VAT accounting) scheme, which means you won't have to pay the import VAT at the time. This option is better for cashflow. Give it a Google. Hope that helps!
I am wanting to place an order of allibaba and in the shipping terms are DAP Express. And the agent in china is telling me they will ship directly to my door and all duty + vat is included. Is this correct ?
No that is not normally the case. Both will deliver the goods to your door / final destination. DDP means the seller will cover all import duties and taxes. DAP means you(buyer) are responsible for paying the import duties and taxes
Right now, I don't see any EORI number requested, or any store charging VAT. If the EORI number does not matter, then why would I use it then? (especially if i can use the EORI number of my fulfillment center). Also, the chances that the HMRC is going to chase a Dutch company that is selling to the UK, is very little. I don't see how any import can be tracked by to my company. Is it needed to put a company name on the package? A url? A name of store? The bank account that paid for a particular order? (I don't believe a fulfillment center in China would have it that well documented). I am sure enough that most people in the industry would take the chance. Since no store charges VAT. This really puts me in a disadvantage. Can an import be tracked back to the point of sale at all times?
Can anyone help me, (first time importing from US) I’ve ordered at statue of a character (for £380.80 gbp) after been converted from USD from a game and I’ve used simple duty calculator I google and it say 0% duty fee and just the VAT I’d have to pay is this correct?
Excellent Video. Question) We are US Seller trying to grow in UK. Would you recommend any specific company which has low hidden fee (administrative fee)? or Can hidden fee be waived if the seller are VAT registered or Duties are somehow pre arranged?
@@LucaDavenport Thank for your input. Not interested in deferment account. Would you recommend a company which charge reasonable fee and provide good service?
Im really confused by charging vat and paying for vat… If i buy goods from japan or china and import them and then sell them as a business in the uk to uk customers do i then have to charge vat to customers or not ? Can somebody help me out with this please many thanks
If you are VAT registered, then you have to charge VAT to customers in the UK but can claim back any import VAT paid on the goods. If you are not VAT registered, then you do not need to charge customers in the UK any VAT but you will have to pay import VAT and cannot claim it back.
Hi Luca, your video is really helpful. I registered the Vat when I set up the limited company, but I have not sell anything so far. Can I degregister for the VAT?
Hi, I'm making bids for an item located in Belfast on eBay. Before I proceed I would appreciate if you could let me know whether I'll have to pay VAT and/or customs duty. I live in England. Cheers.
Most of the products in the shops are from China. Already paying these charges . So not buying UK produce because we don't make any of these items. What aboutsecond hand goods?
Please, can anyone help me? I made a purchase on alibaba for 600 ointments. The alibaba The seller delivers when the goods are made available to the buyer on the arrival means of transport, ready to unload at the designated destination If it is taxed how do I pay these fees?
Nope you don't need to be VAT registered until your business hits £85K in annual revenue. I've your business is not VAT registered you need to pay import VAT and VAT on all business expenses, however don't need to charge VAT on your sales. If your business is VAT registered you can claim back import VAT and VAT charged on business expenses, however need to charge VAT on sales. You might find this video helpful: th-cam.com/video/xpnz-hUlJvA/w-d-xo.html
Very informative video. What documents we need to have ready and how to prepare it for non business person to ship about £350 pounds value parcel by train? New to this, just need 200 jars for candle making and can't get my head around it.
If my shipping (~€7) is from Belgium and my package (~€20) need to be in Belgium, do I still need to pay extra on Aliexpress? Or will my total price be just ~€27?
DDP stands for Delivered Duties Paid, however normally also covers the cost of import VAT as well so you shouldn't normally have to pay either of these yourself if you have agreed DDP terms
Hey Tom, glad it was helpful! If you’re not VAT registered then you will need to pay import VAT. If your company is VAT registered then you can claim that VAT back. I’ve got a video that explains this all in more detail here: th-cam.com/video/xpnz-hUlJvA/w-d-xo.html
Sir how we can pay directly uk custom duties and vat tax on our product to uk gov if we get shipping from china to uk on ddu shipping terms ? Plz explain
Hey, it is possible to pay import duties and VAT directly to HMRC yourself, however its quite complicated and expensive and that's why most people choose to use a freight forwarder for this service unless they are importing very large quantities on a regular basis.
@@LucaDavenport sir what you recommended I am a biggner seller on amazon?I PERSONALLY PAID TO HMRC OR GET THROUGH FREIGHT FARWADER ?Sir where i find private 3rd party fba center .can you suguest me in uk. I never get find it?and Sir for uk and Europe markit we required EAN BARCODES or upc barcode ?Sir can you give us contact number of good freight farwaders that work on ddu shipping terms from china to uk . THANKS FOR YOUR FEED BACK
Hey, I would recommend using a freight forwarder. Some good ones in the UK are: Westbound logistics, Woodland group & Unity logistics. When it comes to FBA prep centres there are many in the UK so I would give it a google and contact a few. You can use either type but we mainly use EANs and these must be purchased from GS1. You should also look into 'GTIN exemption' on Amazon.
Random question - say I've imported my goods to the UK from China and paid the import VAT and duties. What happens then if I import those goods from myself to Amazon in Germany - what value do I declare the goods have when importing to the EU?
You would need both a UK and EU EORI number and you would essentially be exporting the goods from the UK to the EU but you would retain ownership, therefore on the export/import declaration you would need to state that no import VAT or Duties is due as the products have not been sold. I would recommend working with a freight forwarder who can do this all for you.
Hi, what if I am importing two pallets of “samples” to introduce it to wholesalers. In this case do I still have to pay customs duty? Manufacturer is going to send it at no cost! I am only responsible for shipping and they arrive from an EU country into the UK. Do I have to provide an EORI number? Thank you in advance :)
That is quite a unique situation, so I'm not 100% sure I'm afraid! You do not need to pay import duties/VAT on 'commercial samples', however this normally relates to samples that factory send your company to try and win the business. It all depends on whether what you described still counts as a 'commercial sample'. I would speak with HMRC for clarity.
Yep you should always ask for your supplier/freight forwarder to use your company details and EORI number on the commercial invoice for customs purposes, however if shipping DDP they will be covering the duties and most likely VAT. That said I would recommend avoiding DDP as there are a lot of dodgy tactics used by Chinese suppliers to reduce their import duties and vat costs such as undervaluing the goods etc. I would recommend purchasing on EXW or FOB terms and using your own freight forwarder to be 100% safe.
Hello I just ordered goods from China and the delivery service provided is DDU. My item is going to be shipped next week. When should I pay VAT and customs? When it arrives or when they ship it ? Thanks. I have my supplier my Uk EORI number too. Hopefully you can reply back.
Hey, it will depend on what shipping / incoterms you have agreed to. Has your freight forwarder / shipping company not advised you on when the VAT & Duties need to be paid?
That means that no import duties are charged on that product when importing into the UK, which is great! You will still have to pay import VAT though, unless VAT is also 0%.
What happens when you buy from E-Bay who charge vat at point of sale ? does as has suggested in the media customs charge VAT over and above that already collected by the seller in this case E-Bay?
If you are based in the UK and are VAT registered, then you are responsible for collecting VAT on Ebay sales. If you are based outside of the UK, then Ebay will collect VAT on your behalf
Hi Lucas, What happens if you are importing from China DDP and they are covering all costs, What happens when I sell my product in the UK how do I then claim my Vat back as this would mean Vat is being charged twice?
Hey Leon, if you're business is VAT registered you don't want to let your supplier ship your products DDP as they will usually use their own business or a partner business as the UK importer on paper. This means your business won't be the business paying the import VAT, you won't receive a C79 and won't be able to claim back the import VAT.
Hey, there used to be a £135 threshold, however since Brexit happened that has now been removed so you may need to pay import VAT and import duties on the product even if it is only $100
Would this all be predetermined/calculated before you commit to the manufacturing of your product? Then you’d recalculate your profitability per unit to see if it’s still viable?
Yep exactly! You need to get some rough shipping quotes in and work out what your import duties and VAT will be before negotiating on price with your supplier and committing to manufacturing.
Yep, if you ship DDP but most professional businesses do not purchase / ship on DDP terms. Instead they will purchase on EXW or FOB terms and use their own freight forwarders.
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If the sale has already taken place on Amazon, and I ship the product from my country to the final consumer in the UK, with VAT already collected and an EORI number in hand, what are my obligations? My intention is not to burden the customer with any additional costs. I wish to cover any potential import duties if customs imposes them. Will the presence of an EORI number facilitate the clearance of the package, allowing me to later invoice and pay directly to HMRC based on that record?
Everyone gets ripped off in business
Well done everyone who voted for Brexit! Are you happy now to pay extra? 🤔
Hello. Mam
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
Hello. Mam
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
Thanks man, no one on internet could explain this more clearly than you. Big thanks
Happy to help!
hello sir i want to get cargoo from china to uk amazon fullfill center which the best and cheap way ?is it take supplair freight farwadar or get arrange third party freight farwader? how i get the cheap freight farwader ? so which is the best way plz explain
Hello sir, I am wanting to import leather shoes (Brogue) from India. CIF £3971. How do I work out duty & tax
Hello. Mam
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
@@debrinchkdltd3684 hello i am from India and exporter of Indian products can we talk more about it
Hello sir
My name is Kripalsinh jadeja. I am from India . I am a exporter of Indian products
I am searching buyers in UK. Can you help me regarding finding buyers.
If you buy an item from USA and then want to return it what happens to the custom charges? Especially if the items wasn’t delivered on time… thanks!
Hey, in that situation you can claim that back. If your product was shipped via a courier then you should be able to claim a refund through them or alternatively directly with HMRC.
OMG Amazing Video. Thanks a lot for sharing this valuable information.
Considering all these costs and looking at the competitive market a new comer small business would not have too much hope
Exactly where I find myself. Daylight robbery this
Really helpful Luca thank you!
Wow, this is what I've been searching for days, finally got the info i wanted. Very helpful. Many thanks for this video Luca👍
My forwarder will pay everything ddp to amazon so when i file VAT to hmrc can i claim back our VAT on import ?
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
you explained this too well thanks!
Hey Luca just to confirm as a vat registered business you claim the vat you paid back right?
Yep, that's right!
Do we still need to pay VAT on goods from China if we are not VAT registered in the UK? Our revenue has still not hit the 85k mark
Yes you do. Once you become VAT registered you don't have to, so you can claim it back.
As a side note, HMRS are Сunts
very useful video
Hi Luca, very helpful video, thank you! I have a question, how do we calculate VAT and customs duty when we have different types of products in the same container that have different custom duty %?
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
I am going to courier my personal PC from USA to UK...AND IT LOOKS LIKE IM GOING TO HAVE TO PAY DUTIES!?!?!?!
i should have paid extra luggage costs but was worried about it being chucked around by bagage handlers!!! Is their anyway i can just have it fedex/UPS/USPC to me with no duties?!?!?!
It's crazy. Any help? Please?!
the video is quite good. the news about all these neverending costs are not that exciting though :-)
Our company have rigistered in uk And we have vat and eori aswell
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
Hi Luca, thanks for the video! I am a seller based in Australia, and I am trying to figure out the costs (VAT etc.) for when I ship my products from Australia to the UK. As you explain in your video I will have to pay Import Duties and VAT when my products enter the UK. As an overseas business I will also have to pay VAT on my sales and I won't have the VAT free threshold. Does this mean that I will have to pay VAT when I import and also when I sell my products? Does this mean I would be charged VAT twice? Just trying to wrap my head around the cost implications to see if selling in the UK is actually viable for me, as this would be a huge expense. Thanks!! :)
want to import from India ? I will be happy to help you
Hello, we have not registered for VAT as do not reached to the threshold. Alibaba will charge VAT on purchase. I am dealing a DDP shipment from the supplier to UK. Will I be paying VAT once again when goods will enter in UK?
Hi ordered a watch from aliexpress and I am an international student in UK and I don't have a vat number and etc. I heard that I have to pay a tax and etc can you help ?
Hopefully by the end of this video you'll understand exactly how to calculate Duties & VAT when importing goods into the UK! P.S: It's important not to get confused between the incoterm 'CIF' and 'CIF Value' as these are two different things.
I did understand, I am about to start Amazon Fba , I’m learning everything step by step , i ordered sample of product, I paid for sample + shipping today got text message saying I have to pay £25 for import duties , sample cost me £30 including shipping , I was looking for information on import duties and I got lucky you just uploaded detailed video of Duties thanks a lot , But still I can’t understand why I been charged so much by dhl ,
Hey, did you want till the end of the video when I talked about hidden fees? It's likely they have charged you an admin clearance fee, which tends to be around 5% or £20, whichever is higher.
Luca Davenport yes I did watched whole video and I got that admin fee part as well they charged me £11 admin fee , Luca ur star very detailed video thanks a lot , you got new subscriber 👍🏼
Hi I just want to buy something from USA and the price is £73 plus £12 shipping so should I pay vat and duties for this item thanks
@@Soni-asghari do you know if i buy £112 total price which is small amount of clothes .do i have to pay tax
Is there a way to reduce import tax when sending small items to countries outside the UK (german, Latvia ect). I don't seem to need to pay any import tax when shipping to the US? Does anyone know why this is?
Hi Luca. Great video. I'm still a little confused however. I just ordered my first shipment which was my supplier did through UPS. It made it through customs and has been selling for a month on AMazon so I believe that UPS paid the customs and VAT on my behalf. The UK gov people I spoke to on the phone said that unless I used Royal Mail or Parcel Force that I would always have to pay this kind of extra commision to the company. What I'm wondering is where your process in this video comes in? I have my commodity code but I don't understand when and how I'm meant to use it. Is there a particular form I should fill in and if so to whom should I send it to? Also, should I ask my supplier to use Royal Mail or Parcel Force? Not too sure if they go from China. I'm basically very confused and while I would like to use your process above I'm missing the steps to do it. Any help would be really appreciated. Many thanks, Seb
Hey, so it's not really a process that you need to do, this video is just to help breakdown and explain import fees. Normally either your freight forwarder or courier will pay the import duties and VAT on your behalf and then invoice you some time later and as mentioned at the end of the video they will normally charge you a small fee for paying up front on your behalf. You may still receive an invoice from UPS, give it a few more weeks. Also RM and Parcelforce don't ship from China.
@@LucaDavenport Hi, if you order through ups, fedex etc. you do not need to fill any forms before or after the shipping as you do when ordering bigger qty's?? just wait for the invoice and pay? if you ship directly to amazon how will they know as to where to send that invoice? thanks!
If your shipping your goods via express air shipping using a courier such as TNT, DHL, UPS etc, you/your supplier will need to attach a commercial invoice to the shipment. This invoice will include information about your supplier, the goods being shipped and you as the importer. It should include your EORI number and this is how the import is connected to your company. Of course if you book the shipping with a freight forwarder they know to invoice you as you are the one who's booked the shipping.
Hi sir I am going to UK from Pakistan I wana bring my 150 dollar worth beauty equipment facial machine , is any custom duty will apply on this product?
Are we going to calculate VAT 20% on Selling price of Amazon as well or not? Please guide
Hi Luca, can we do alibaba tax exemption without vat register ? if yes please leave some information that will be appreciated thanks
I have paid for a tester on alibaba do u get charged for this already paid VAT on check out am I expecting anything else to pay ? Even thow it was a low cost tester Item
Found this video very informative indeed. Thank you
What about those who are not VAT registered at the moment?
If you are not VAT registered you need to pay both import duties and import VAT. If you are VAT registered, you can claim the import VAT back from HMRC.
Hiya! Brilliant video, but! I went to the HMRC, found my commodity code but there was no % next to it! Is it because HMRC have updated or is it because I'm looking on mobile? Thanks in advance!
Thanks! If you're on mobile , make sure you click on the coloured numbers and go onto the commodity code page. You shiuld see it there!
Not worth importing from UK to IRE these days
What if you buy at an online auction ? previously used product...
I live in lreland and I want to buy a item in the UK. Can you help me please?
Thanks for this video!!!! The UK is so vague with charges! Even after lots of research I knew about the handling fee and VAT, but not tariff tax. So many thanks!
You have made things a lot easier by bringing all the info together.
I don't know why royal mail and DHL don't make this obvious so it is less of a shock to people picking them up.
It is quite scary paying a lot on an item from abroad, and not really know what else will be charged when it arrives.
This also gives people proof of what to challenge if it feels like they have charged extra for no reason.
Great content. want to import from India ? I will be happy to help you
The courier admin fees do my head in. I dont want my customers getting a surprise fee to pay, and it seems SO MUCH when only buying lesser priced items. I still dont have the hang of it all, but this part feels make or break for importing from the eu to the uk.
Is there somewhere i can get more info to understand this better?
Yep! The best place to find more info is on the Gov.Uk website or help articles on your couriers website.
Very informative, I'm assuming this is EXW purchases and not DDP, I normally purchase DDP but want to start claiming the VAT back rather than getting the supplier to pay the taxes.
Correct! This is for every other incoterm (EXW, FOB, etc...) that does not include duties & VAT in the price, like DDP does.
Just what I needed to know brilliant thank you.
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
Hi I just ordered drone form china bangagood irs cost 399£ amd they said( Please note that you are responsible for all import taxes and duties that may be charged when your parcel passes through Customs if you have not bought the tariff insurance.)
Ans i don't know its is point to buy it The question its how much prapobly I need to pay If its arrived? I WAS UNABLE to buy it insurance tariffin on website I hope you can help me thanks!
Hi there, if you follow the steps show in the video, you should easily be able to work out how much will need to be paid.
Alibaba is also charging me VAT. So I'm paying import VAT (via DDP) and also VAT to alibaba. I'm not VAT registered so i can't claim these back. Is there a way to avoid paying VAT to alibaba?
Nope, not unless you are VAT registered. But that is why I wouldn’t recommend using DDP. Instead use your own freight forwarder and they will be able to avoid you paying import VAT if you have already paid VAT on Alibaba.
I have just watched the video which was fantastic and made the whole process much clearer. Just one query, we are VAT registered so I presume that the VAT that we are charged on the good imported, we can then claim back at the end of our VAT quarter? This would then reduce the unit cost of each item. Regards
Glad it helped! Yes exactly, if you pay import duty at the time of import, you can claim this VAT back when you do your VAT returns. Alternatively you can join the governments new "PVA" (postponed VAT accounting) scheme, which means you won't have to pay the import VAT at the time. This option is better for cashflow. Give it a Google. Hope that helps!
thank you, thats great, what documents do I need from my supplier and shipping company?
You need a commercial invoice from your supplier and a bill of lading from your shipping company
Great video! Do I still have to pay VAT if I am a individual seller buying from China or is it only limited companies who pay? Thanks.
Cheers! No I'm afraid everyone has to pay import VAT
This is no longer accurate due to Brexit and a change to the import duty rates as per notice 143. Can it be updated?
I am only 2 minutes into the video is by far the most informative video out there. Thank you very much🙌
I am wanting to place an order of allibaba and in the shipping terms are DAP Express. And the agent in china is telling me they will ship directly to my door and all duty + vat is included. Is this correct ?
No that is not normally the case. Both will deliver the goods to your door / final destination. DDP means the seller will cover all import duties and taxes. DAP means you(buyer) are responsible for paying the import duties and taxes
Thank you for this video. I do not understand why sometimes we have to pay this and at others there is nothing to pay ?
Sometimes sellers will send shipments as 'commercial samples' of 'gifts' and these then won't incur any import duties or VAT.
This is really a helpful video to understand. Thank you.
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
I’m importing shoes from the US to the UK and the shoes r valued at £850 (7 pairs) how much would the import tax roughly cost
Very roughly £250 based on the assumption the duties are around 10% and the shipping fee is included in that £850 value.
Right now, I don't see any EORI number requested, or any store charging VAT. If the EORI number does not matter, then why would I use it then? (especially if i can use the EORI number of my fulfillment center).
Also, the chances that the HMRC is going to chase a Dutch company that is selling to the UK, is very little. I don't see how any import can be tracked by to my company. Is it needed to put a company name on the package? A url? A name of store? The bank account that paid for a particular order? (I don't believe a fulfillment center in China would have it that well documented).
I am sure enough that most people in the industry would take the chance. Since no store charges VAT. This really puts me in a disadvantage.
Can an import be tracked back to the point of sale at all times?
Can anyone help me, (first time importing from US) I’ve ordered at statue of a character (for £380.80 gbp) after been converted from USD from a game and I’ve used simple duty calculator I google and it say 0% duty fee and just the VAT I’d have to pay is this correct?
Excellent Video. Question) We are US Seller trying to grow in UK. Would you recommend any specific company which has low hidden fee (administrative fee)? or Can hidden fee be waived if the seller are VAT registered or Duties are somehow pre arranged?
Hey, glad you enjoyed the video! The only way to avoid those hidden 'admin fees' is to create a 'deferment account' with HMRC.
@@LucaDavenport Thank for your input. Not interested in deferment account.
Would you recommend a company which charge reasonable fee and provide good service?
My pleasure. Woodland group, Unity logistics & westbound global all provide competitive shipping rates and don't have high admin fees.
Please help. When he's talking about insurance. What insurance are we talking about?
Hey, I'm talking about cargo insurance
Hi, can anyone tell me please, if I can import other companies/brand overstock product into uk ?
That shouldn't be a problem as long as you have the brands consent to sell their product in the UK
i got ddp agreed and i am get it cheaper that fob
I am importing parcel from india . How do i pay for customs and vat . Do i need to pay before the item arrives or after please help.
Hey, your courier / freight forwarder will likely pay on your behalf and then invoice you after delivery.
What a video, you explained it so simply and precisely!
hello, I bought an order from China 2 months ago but I still haven’t received a VAT invoice from my freight forwarder etc, should i be worried?
Im really confused by charging vat and paying for vat…
If i buy goods from japan or china and import them and then sell them as a business in the uk to uk customers do i then have to charge vat to customers or not ? Can somebody help me out with this please many thanks
If you are VAT registered, then you have to charge VAT to customers in the UK but can claim back any import VAT paid on the goods. If you are not VAT registered, then you do not need to charge customers in the UK any VAT but you will have to pay import VAT and cannot claim it back.
@@LucaDavenport awesome clear and simple answer thank you so much sir 🙏
Define the concept customs duties
If i choice the items to be shipped DDP still i have to pay something in uk? Thank you 😊
I am looking for the answer of this question
Hi if I want to import from China to UK for online business . Do I Need import licence
No you don't need a license, you just need an EORI number which is free and easy to apply for online
Hi Luca, your video is really helpful. I registered the Vat when I set up the limited company, but I have not sell anything so far. Can I degregister for the VAT?
Yep, you can deregister for VAT as long as your turnover is below the £85K threshold
U dont even need to VAT register even if ur an ltd business only if ur buisness makes more then 85k a year
Hi,
I'm making bids for an item located in Belfast on eBay. Before I proceed I would appreciate if you could let me know whether I'll have to pay VAT and/or customs duty. I live in England. Cheers.
Nope you shouldn't have to as Belfast is in the UK
@@LucaDavenport Thank you for your prompt reply. The special arrangements for Northern Ireland after the damn Brexit was voted for were confusing me.
Very useful, thanks!
When do you pay those though?
You will normally pay this to your freight forwarder when the goods arrive in the UK / just before they are imported into the UK.
Most of the products in the shops are from China. Already paying these charges . So not buying UK produce because we don't make any of these items. What aboutsecond hand goods?
Woah...hidden fees!?!??!!
Please, can anyone help me?
I made a purchase on alibaba for 600 ointments.
The alibaba The seller delivers when the goods are made available to the buyer on the arrival means of transport, ready to unload at the designated destination
If it is taxed how do I pay these fees?
Thank you very much
Thanks mate, just one question, So we need to register VAT for our business before importing?
Nope you don't need to be VAT registered until your business hits £85K in annual revenue. I've your business is not VAT registered you need to pay import VAT and VAT on all business expenses, however don't need to charge VAT on your sales. If your business is VAT registered you can claim back import VAT and VAT charged on business expenses, however need to charge VAT on sales. You might find this video helpful: th-cam.com/video/xpnz-hUlJvA/w-d-xo.html
Very informative video. What documents we need to have ready and how to prepare it for non business person to ship about £350 pounds value parcel by train? New to this, just need 200 jars for candle making and can't get my head around it.
FBA FEES+ Importing fees = absolute shithousery
If my shipping (~€7) is from Belgium and my package (~€20) need to be in Belgium, do I still need to pay extra on Aliexpress? Or will my total price be just ~€27?
i am beging u my shipping is ddp shipping so do i need to still pay tax and vat
DDP stands for Delivered Duties Paid, however normally also covers the cost of import VAT as well so you shouldn't normally have to pay either of these yourself if you have agreed DDP terms
Great video, thanks! Luca, about the VAT if I am importing from China do I need to pay it even if I am not VAT registered?
Hey Tom, glad it was helpful! If you’re not VAT registered then you will need to pay import VAT. If your company is VAT registered then you can claim that VAT back. I’ve got a video that explains this all in more detail here: th-cam.com/video/xpnz-hUlJvA/w-d-xo.html
@@LucaDavenport Great, thanks!
Thanks dear .
You have explained it such a nice way so that any one can understand easily.
Thanks, glad it was helpful!
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
Sir how we can pay directly uk custom duties and vat tax on our product to uk gov if we get shipping from china to uk on ddu shipping terms ? Plz explain
Hey, it is possible to pay import duties and VAT directly to HMRC yourself, however its quite complicated and expensive and that's why most people choose to use a freight forwarder for this service unless they are importing very large quantities on a regular basis.
@@LucaDavenport sir what you recommended I am a biggner seller on amazon?I PERSONALLY PAID TO HMRC OR GET THROUGH FREIGHT FARWADER ?Sir where i find private 3rd party fba center .can you suguest me in uk. I never get find it?and Sir for uk and Europe markit we required EAN BARCODES or upc barcode ?Sir can you give us contact number of good freight farwaders that work on ddu shipping terms from china to uk . THANKS FOR YOUR FEED BACK
Hey, I would recommend using a freight forwarder. Some good ones in the UK are: Westbound logistics, Woodland group & Unity logistics. When it comes to FBA prep centres there are many in the UK so I would give it a google and contact a few. You can use either type but we mainly use EANs and these must be purchased from GS1. You should also look into 'GTIN exemption' on Amazon.
Thanks you are good man
Random question - say I've imported my goods to the UK from China and paid the import VAT and duties. What happens then if I import those goods from myself to Amazon in Germany - what value do I declare the goods have when importing to the EU?
You would need both a UK and EU EORI number and you would essentially be exporting the goods from the UK to the EU but you would retain ownership, therefore on the export/import declaration you would need to state that no import VAT or Duties is due as the products have not been sold. I would recommend working with a freight forwarder who can do this all for you.
You're the man! Thanks, really appreciate this video I was super confused until I watched this!
Glad it helped!
want to import from India ? I will be happy to help you
Hello.
My name is Kripalsinh .
I am from India. I am a exporter of Indian products
I am searching buyers . Are importing good from India
Unreal video
Hi, what if I am importing two pallets of “samples” to introduce it to wholesalers. In this case do I still have to pay customs duty? Manufacturer is going to send it at no cost! I am only responsible for shipping and they arrive from an EU country into the UK. Do I have to provide an EORI number? Thank you in advance :)
That is quite a unique situation, so I'm not 100% sure I'm afraid! You do not need to pay import duties/VAT on 'commercial samples', however this normally relates to samples that factory send your company to try and win the business. It all depends on whether what you described still counts as a 'commercial sample'. I would speak with HMRC for clarity.
Very informative video thanks!! Can anyone confirm if DDP Shipping the manufacturer will pay customs & VAT?
That is correct
Many thanks! You are great! Really good explained point by point. Much LoVe! 👌
Do you know if tourists can claim a refund after paying a custom duty charge ?
is there anyway to avoid it ?
Afraid not!
best video
What if I have a uk ltd company and not VAT registered My supplier send goods ddp. Should I pay VAT or apply eori? Really need help..
Yep you should always ask for your supplier/freight forwarder to use your company details and EORI number on the commercial invoice for customs purposes, however if shipping DDP they will be covering the duties and most likely VAT. That said I would recommend avoiding DDP as there are a lot of dodgy tactics used by Chinese suppliers to reduce their import duties and vat costs such as undervaluing the goods etc. I would recommend purchasing on EXW or FOB terms and using your own freight forwarder to be 100% safe.
Hello I just ordered goods from China and the delivery service provided is DDU. My item is going to be shipped next week. When should I pay VAT and customs? When it arrives or when they ship it ? Thanks. I have my supplier my Uk EORI number too. Hopefully you can reply back.
Hey, it will depend on what shipping / incoterms you have agreed to. Has your freight forwarder / shipping company not advised you on when the VAT & Duties need to be paid?
Hello, please what does it mean when trade tariff commodity code says 0.00%?
That means that no import duties are charged on that product when importing into the UK, which is great! You will still have to pay import VAT though, unless VAT is also 0%.
Oh great, please how do I find VAT for a product that’s 0.00%?
Thank you for your response
Duties are a pure rip off puts me off buying from china what a con.
It's not just China sadly, the same duties are applied to any goods imported from outside the UK!
@@LucaDavenport sir if we ship Switzerland to UK there is no tax because in Google show like that . Do you have any details of it ?
Thanks for beautifully explained
What happens when you buy from E-Bay who charge vat at point of sale ? does as has suggested in the media customs charge VAT over and above that already collected by the seller in this case E-Bay?
If you are based in the UK and are VAT registered, then you are responsible for collecting VAT on Ebay sales. If you are based outside of the UK, then Ebay will collect VAT on your behalf
Hi Lucas, What happens if you are importing from China DDP and they are covering all costs, What happens when I sell my product in the UK how do I then claim my Vat back as this would mean Vat is being charged twice?
Hey Leon, if you're business is VAT registered you don't want to let your supplier ship your products DDP as they will usually use their own business or a partner business as the UK importer on paper. This means your business won't be the business paying the import VAT, you won't receive a C79 and won't be able to claim back the import VAT.
I want to buy a $100 product from alibaba but shipping term is DAP and suppliers are say I might need to pay custom tax. Do I really need to ?
Hey, there used to be a £135 threshold, however since Brexit happened that has now been removed so you may need to pay import VAT and import duties on the product even if it is only $100
👏👏👏👏👏👉
Would this all be predetermined/calculated before you commit to the manufacturing of your product? Then you’d recalculate your profitability per unit to see if it’s still viable?
Yep exactly! You need to get some rough shipping quotes in and work out what your import duties and VAT will be before negotiating on price with your supplier and committing to manufacturing.
thus was an awesome video, thanks so much.
does DDP not cover these costs?
Yep, if you ship DDP but most professional businesses do not purchase / ship on DDP terms. Instead they will purchase on EXW or FOB terms and use their own freight forwarders.