Ashdown VAT Consultancy can help you understand the VAT rules that may apply if you are involved in international trade in goods or services.
Now that our trading relationship with the European Union is agreed, we can help you understand the latest regulations and how these are handled by HMRC. Our aim is to give you the peace of mind you need to trade with maximum efficiency and without fear of fines and financial penalties.
When importing certain goods into the UK, customs duties are payable based on the classification, origin and value of those goods. A preferential rate of duty may be applicable in some cases. We can work with you to ensure that the correct amount of duty is paid. This is particularly important, because duty is generally non-recoverable, unlike VAT.
We can also assist you in applying for certain customs procedures, such as Inward Processing or for a Deferment Account. These may help to reduce the customs duty payable or achieve a cash flow advantage. Customs warehousing may be beneficial to a business, particularly if not all of the imported goods remain in the UK. We have experience of working with clients to apply for Customs warehousing.
You may consider applying for Authorised Economic Operator (“AEO”) status if you regularly import goods or plan to use a customs procedure such as Inward Processing or Customs Warehousing. AEO status means that your goods may be stopped less frequently at the border and it may be easier to apply for other customs procedures.
Providing services to businesses based outside the UK may be outside the scope of UK VAT. You will need evidence to support this treatment and it does not apply to all services provided. We can provide guidance on the evidence needed to ensure you charge the correct VAT on your services.
If you receive certain services imported from outside the UK, you may be obliged to register for UK VAT, if you have not already done so. If you are registered for UK VAT, you will need to declare these imported services on your VAT return. This may result in an actual VAT charge depending on your situation. HMRC regularly makes enquiries into non-VAT registered businesses that import services from outside the UK. We have wide experience in dealing with these situations.
