Invest NI No Nonsense Guide 11 (PDF) - Invest Northern Ireland

Check for changes in the lawRegulations, figures and sumsof money may have changedsince publication28You must enter on yourVAT return details of VAT ongoods acquired from withinthe European Union (EU) —including the Republic ofIreland. This is known asacquisition tax. However, youare entitled to reclaim input taxon the goods as if they weresupplied in the UK subject to thenormal rules.If you import goods worthmore than £77,000 a yearfrom other EU countries youmust register for VAT. If yourEU imports exceed £600,000you must file more detaileddeclarations, known as IntrastatSupplementary Declarations.For goods imported fromoutside the EU, import VATand duty must be paid beforethe goods are released byHM Revenue & Customs.Duty is an additional tax,based on the value of importedgoods. Duty varies according totype of product and country oforigin. In some cases no dutymay be payable. HM Revenue& Customs can advise you on therate of duty which applies to aparticular product.Duty cannot generally bereclaimed by VAT-registeredbusinesses, except where goodshave been imported underInward Processing Relief (seebelow). There is no duty ongoods which originate from anEU country (except excise goodslike tobacco or alcohol) or whichhave already been importedwith customs charges paid.For example, when goods aresupplied from the US to Belgium,duty and other taxes are paidin Belgium. Once in the EU, thegoods are in free circulation.If they later enter the UK, nocustoms charges are payable.When importing goodsfrom outside the EU, you canstore them in an approvedHM Revenue & Customswarehouse if you do not intendto sell them immediately. VATand import duty become payablewhen the goods leave thewarehouse.If you intend to re-exportthe goods outside the EU afterprocessing them, you can applyfor Inward Processing Relief. VATand duty only become payable ifyou sell the goods in the EU orfail to comply with the scheme’sconditions.If you import regularly,you can operate a defermentaccount, settling your VAT andduty monthly. You may need abank guarantee for this.Next steps● Visit www.nibusinessinfo.co.uk/customs● Further guidance about VATfor imported goods andservices is available fromHM Revenue & Customs.Contact 0845 010 9000;www.hmrc.gov.uk/vat● For more information aboutdeferment accounts, read:Deferring Duty, VAT And OtherCharges (Notice 101). ContactHM Revenue & Customs VATHelpline: 0845 010 9000;www.hmrc.gov.uk● For more information aboutIntrastat visit:www.uktradeinfo.comVAT on exportsThe value of any exports youmake — whether to countrieswithin or outside the EU —must be entered on your VATreturn. In many cases thesetransactions will be zero-ratedfor VATBusinesses in the UK that sellto VAT-registered businessesin other parts of the EU —including the Republic of Ireland— must submit details of thetransactions to HM Revenue& Customs.If you have a high levelof export trade with otherEU countries, you may haveto submit more detaileddeclarations, known as IntrastatSupplementary Declarations.If you export goods to acustomer outside the EU and areVAT-registered, the goods can bezero-rated.If you are VAT-registeredand supply goods that are sentfrom the UK to a VAT-registeredcustomer in another part of theEU, the goods can be zero-rated.The supply of some servicesto customers outside the UK isalso zero-rated, but many attractstandard-rate VAT.Complex rules surroundexports and VAT. Check withHM Revenue & Customs foradvice.The No-Nonsense Guide