UK valuing goods for Brexit import VAT & customs duties
- Nov 19, 2020 | Richard Asquith
When the UK leaves the EU VAT regime and Customs Union after 31 December 2020, import VAT. Although there will be no customs duties following the confirmation of a Brexit Free Trade Agreement in December 2020.
The rules on how to calculate the base cost of goods vary for import VAT and customs. It is important you understand the rules and differences to avoid under declaring taxes – which can lead to blocked goods and fines – or overpaying and making loses. In all cases, it's important you categorise your goods with HS commodity code for your customs declarations, tariff and VAT calcualtions..
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Researching UK VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.