How To Calculate VAT and Customs Duty When Importing From China | Amazon FBA UK

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Luca Davenport

Luca Davenport

Күн бұрын

Пікірлер: 271
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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@ilkbaharkunduzu1
@ilkbaharkunduzu1 9 ай бұрын
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?
@achrafelouahdi
@achrafelouahdi 4 жыл бұрын
Thanks man, no one on internet could explain this more clearly than you. Big thanks
@LucaDavenport
@LucaDavenport 4 жыл бұрын
Happy to help!
@usmanfarooqofficial1178
@usmanfarooqofficial1178 3 жыл бұрын
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
@debrinchkdltd3684
@debrinchkdltd3684 3 жыл бұрын
Hello sir, I am wanting to import leather shoes (Brogue) from India. CIF £3971. How do I work out duty & tax
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
​@@debrinchkdltd3684 hello i am from India and exporter of Indian products can we talk more about it
@positiveviboo9322
@positiveviboo9322 4 жыл бұрын
Considering all these costs and looking at the competitive market a new comer small business would not have too much hope
@Nomoreranch0
@Nomoreranch0 3 жыл бұрын
Exactly where I find myself. Daylight robbery this
@Claire-to5ym
@Claire-to5ym 3 жыл бұрын
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.
@Erica-ib1ih
@Erica-ib1ih 3 жыл бұрын
I am only 2 minutes into the video is by far the most informative video out there. Thank you very much🙌
@Peppykids2
@Peppykids2 4 жыл бұрын
Wow, this is what I've been searching for days, finally got the info i wanted. Very helpful. Many thanks for this video Luca👍
@Paula-ei2jm
@Paula-ei2jm 3 жыл бұрын
Thanks dear . You have explained it such a nice way so that any one can understand easily.
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Thanks, glad it was helpful!
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@bailey734
@bailey734 3 жыл бұрын
You're the man! Thanks, really appreciate this video I was super confused until I watched this!
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Glad it helped!
@JashnInternational
@JashnInternational Жыл бұрын
want to import from India ? I will be happy to help you
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@joeboulton7638
@joeboulton7638 3 жыл бұрын
What a video, you explained it so simply and precisely!
@bukolapopoola8534
@bukolapopoola8534 3 жыл бұрын
A million likes for this video. You did such a good job of breaking it down for me. Double thumbs up!!
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@sanasohail9171
@sanasohail9171 3 жыл бұрын
Thank you for this video. I do not understand why sometimes we have to pay this and at others there is nothing to pay ?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Sometimes sellers will send shipments as 'commercial samples' of 'gifts' and these then won't incur any import duties or VAT.
@joshuahughman8978
@joshuahughman8978 2 жыл бұрын
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 %?
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@MantasTruksaninas
@MantasTruksaninas 2 ай бұрын
Very useful, thanks! When do you pay those though?
@LucaDavenport
@LucaDavenport 2 ай бұрын
You will normally pay this to your freight forwarder when the goods arrive in the UK / just before they are imported into the UK.
@saaddar
@saaddar 25 күн бұрын
can you tell please how to pay vat and duties?
@Stargazer22
@Stargazer22 4 жыл бұрын
Found this video very informative indeed. Thank you
@a320trevor
@a320trevor Жыл бұрын
Just what I needed to know brilliant thank you.
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@ellamikhael747
@ellamikhael747 3 жыл бұрын
thank you, thats great, what documents do I need from my supplier and shipping company?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
You need a commercial invoice from your supplier and a bill of lading from your shipping company
@charlieharris9434
@charlieharris9434 2 жыл бұрын
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!
@LucaDavenport
@LucaDavenport 2 жыл бұрын
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.
@hazzadgolf
@hazzadgolf 11 ай бұрын
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
@LucaDavenport
@LucaDavenport 11 ай бұрын
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!
@lokmanekrizou2955
@lokmanekrizou2955 3 жыл бұрын
Thank you so much Luca, you nailed it, best explanation you can find in youtube
@craiggraham5847
@craiggraham5847 Жыл бұрын
As a side note, HMRS are Сunts
@vollergewinn4985
@vollergewinn4985 2 жыл бұрын
How do you determine the insurance value?
@FarhanSikandersbk
@FarhanSikandersbk 3 ай бұрын
Are we going to calculate VAT 20% on Selling price of Amazon as well or not? Please guide
@jonahart777
@jonahart777 2 жыл бұрын
What if you buy at an online auction ? previously used product...
@lpremathetech
@lpremathetech 2 жыл бұрын
Very easy to understand! Thanks Luca
@syedsaadrahman7925
@syedsaadrahman7925 2 жыл бұрын
OMG Amazing Video. Thanks a lot for sharing this valuable information.
@elvst3331
@elvst3331 2 ай бұрын
Hi been told no VAT & Duties if the product value includes shipping and tax in other country is less than £135. Could you confirm that please?
@fbawithali
@fbawithali Жыл бұрын
My forwarder will pay everything ddp to amazon so when i file VAT to hmrc can i claim back our VAT on import ?
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@dineshtvelvel1989
@dineshtvelvel1989 3 жыл бұрын
Thanks mate, just one question, So we need to register VAT for our business before importing?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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: kzbin.info/www/bejne/rqHRq2CeitF9rKM
@redakavaliauskaite4099
@redakavaliauskaite4099 3 жыл бұрын
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.
@rummy3397
@rummy3397 2 жыл бұрын
Thank you for the video. For discounted/sales items, please let me know if import VAT is paid at the price that we actually pay or full price?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
Its based on the price you paid for the item
@rummy3397
@rummy3397 2 жыл бұрын
@@LucaDavenport Thank you :)
@LucaDavenport
@LucaDavenport 4 жыл бұрын
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.
@wmeshop9428
@wmeshop9428 4 жыл бұрын
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 ,
@LucaDavenport
@LucaDavenport 4 жыл бұрын
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.
@wmeshop9428
@wmeshop9428 4 жыл бұрын
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 👍🏼
@Soni-asghari
@Soni-asghari 4 жыл бұрын
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
@rranamagar1673
@rranamagar1673 4 жыл бұрын
@@Soni-asghari do you know if i buy £112 total price which is small amount of clothes .do i have to pay tax
@ganibeltcuaresma3260
@ganibeltcuaresma3260 3 жыл бұрын
Many thanks! You are great! Really good explained point by point. Much LoVe! 👌
@usmanfarooqofficial1178
@usmanfarooqofficial1178 3 жыл бұрын
Our company have rigistered in uk And we have vat and eori aswell
@kripaljadeja751
@kripaljadeja751 6 ай бұрын
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
@andrewpayne5514
@andrewpayne5514 5 ай бұрын
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.
@LucaDavenport
@LucaDavenport 4 ай бұрын
Correct! This is for every other incoterm (EXW, FOB, etc...) that does not include duties & VAT in the price, like DDP does.
@KAANASICI
@KAANASICI Жыл бұрын
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 ?
@aspears5908
@aspears5908 Жыл бұрын
Very informative video thanks!! Can anyone confirm if DDP Shipping the manufacturer will pay customs & VAT?
@LucaDavenport
@LucaDavenport Жыл бұрын
That is correct
@winniecheuk5147
@winniecheuk5147 3 жыл бұрын
Your information is really useful,thank you so much
@lalitakumar8980
@lalitakumar8980 3 жыл бұрын
Really helpful Luca thank you!
@maggie9925
@maggie9925 2 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
Yep, you can deregister for VAT as long as your turnover is below the £85K threshold
@shanxoxox8491
@shanxoxox8491 Жыл бұрын
U dont even need to VAT register even if ur an ltd business only if ur buisness makes more then 85k a year
@driftathug
@driftathug 3 жыл бұрын
Thank you this was big help, may I ask what is the fastest shipping method you recommend when it comes to shipping from China to UK?? Thanks
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Hey, express air shipping is the quickest but is very expensive at the moment due to the pandemic!
@kabeerpm5178
@kabeerpm5178 3 жыл бұрын
Thanks for beautifully explained
@mujahidashraf5755
@mujahidashraf5755 8 ай бұрын
Hi Luca, can we do alibaba tax exemption without vat register ? if yes please leave some information that will be appreciated thanks
@A-pt2xo
@A-pt2xo Жыл бұрын
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
@LucaDavenport
@LucaDavenport Жыл бұрын
Yes you do. Once you become VAT registered you don't have to, so you can claim it back.
@SimplySport
@SimplySport Жыл бұрын
Hey Luca just to confirm as a vat registered business you claim the vat you paid back right?
@LucaDavenport
@LucaDavenport Жыл бұрын
Yep, that's right!
@OO-ng9qf
@OO-ng9qf Күн бұрын
Who should I contact to claim the VAT i paid back? Will they return the VAT to me. ​@@LucaDavenport
@MassiveDiscounts2023
@MassiveDiscounts2023 Жыл бұрын
If i choice the items to be shipped DDP still i have to pay something in uk? Thank you 😊
@Eddie123uk
@Eddie123uk Жыл бұрын
I am looking for the answer of this question
@sebastianreid9123
@sebastianreid9123 4 жыл бұрын
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
@LucaDavenport
@LucaDavenport 4 жыл бұрын
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.
@jagodaseta6140
@jagodaseta6140 4 жыл бұрын
@@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!
@LucaDavenport
@LucaDavenport 4 жыл бұрын
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.
@Dave-sn5kp
@Dave-sn5kp 7 ай бұрын
does DDP not cover these costs?
@LucaDavenport
@LucaDavenport 7 ай бұрын
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.
@frederikhackenberg8396
@frederikhackenberg8396 Жыл бұрын
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!! :)
@JashnInternational
@JashnInternational Жыл бұрын
want to import from India ? I will be happy to help you
@theonlineathlete3310
@theonlineathlete3310 4 жыл бұрын
Everyone gets ripped off in business
@AA-uf3bl
@AA-uf3bl 2 жыл бұрын
How come I wasn't asked to pay any VAT or customs duty when I bought a belt on Amazon, which was delivered from China in 2016, or was it because it was prior to Brexit, or has it got to do with the price of the item? Thanks you for shedding a bit of light on this, as I want to order an item again on Amazon sent from China.
@LucaDavenport
@LucaDavenport 2 жыл бұрын
Hey, like you said that was several years ago and since Brexit things have no changed. If you were to buy a belt from China now, you will likely be charged VAT and import duties by Amazon at checkout.
@AA-uf3bl
@AA-uf3bl 2 жыл бұрын
@@LucaDavenport Thanks a lot, mate. Will let you know how it goes.
@AA-uf3bl
@AA-uf3bl 2 жыл бұрын
@@LucaDavenport You're right, Amazon charges them at checkout. Thanks Brexit and all the fuckers who voted for it, Boris - the embarrassing buffoon - in the first place.
@shafqatsaleem6336
@shafqatsaleem6336 3 ай бұрын
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?
@jameshodgson9563
@jameshodgson9563 10 ай бұрын
thus was an awesome video, thanks so much.
@olierance
@olierance 3 жыл бұрын
Useful video. If I have paid for a DDP price leaving my supplier to arrange door to door delivery. Will I need to pay VAT separately?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Hey so technically DDP means Delivered Duties Paid, so import VAT may still need to be paid but the import duties should be included in the price. That said, when suppliers say DDP, they sometimes mean the price includes import duties & VAT, so I would check with your supplier to see whats included
@markhor1vlog2888
@markhor1vlog2888 3 жыл бұрын
very informative and well explained
@jasonmighty3328
@jasonmighty3328 2 жыл бұрын
I'm curious if you still have to pay VAT if you don't plan to sell on your items?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
Yep you do. If you are VAT registered and you sell them, you can then claim the VAT back but if you are just an individual buying personal products from abroad, yes you have to pay import VAT and can't claim it back
@jasonmighty3328
@jasonmighty3328 2 жыл бұрын
@@LucaDavenport ah, thanks for telling me
@thedailyblurb
@thedailyblurb 3 жыл бұрын
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.
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Cheers! No I'm afraid everyone has to pay import VAT
@tombeldon7881
@tombeldon7881 4 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 4 жыл бұрын
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: kzbin.info/www/bejne/rqHRq2CeitF9rKM
@tombeldon7881
@tombeldon7881 4 жыл бұрын
@@LucaDavenport Great, thanks!
@hasnatmalik4404
@hasnatmalik4404 4 жыл бұрын
After a long time 😃
@basheerahtunde
@basheerahtunde 3 жыл бұрын
Quick question please, do I need to do this if I have a freight forwarder and they are offering DDP service? Or I need to regardless.
@LucaDavenport
@LucaDavenport 3 жыл бұрын
DDP shipping will normally include import VAT & Duties in the shipping price, however it's always best to double check with your freight forwarder.
@user-zh7th2ge1c
@user-zh7th2ge1c 3 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Yep! The best place to find more info is on the Gov.Uk website or help articles on your couriers website.
@richmindset3315
@richmindset3315 3 жыл бұрын
Thank you so much, that was really helpful man!
@lindiwemanzini-oy9qg
@lindiwemanzini-oy9qg Жыл бұрын
Define the concept customs duties
@annamaziz6894
@annamaziz6894 3 жыл бұрын
you explained this too well thanks!
@rehmanyasin2287
@rehmanyasin2287 3 жыл бұрын
i am beging u my shipping is ddp shipping so do i need to still pay tax and vat
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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
@janzalis1421
@janzalis1421 3 жыл бұрын
Please help. When he's talking about insurance. What insurance are we talking about?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Hey, I'm talking about cargo insurance
@MsBoobiDoo
@MsBoobiDoo 3 жыл бұрын
Excellent information, thank you
@Robthevampire666
@Robthevampire666 3 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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
@prodbya3781
@prodbya3781 2 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
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.
@JamieStreet
@JamieStreet 2 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
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.
@mp-fo3fm
@mp-fo3fm Жыл бұрын
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?
@joshuawilliams5757
@joshuawilliams5757 2 жыл бұрын
Hi Luca. Incredibly helpful video, thank you so much. I have a quick question... you mentioned the manufacturer/supplier in China not charging VAT, but for all of my samples I paid VAT, and for my bulk order soon, I am being quoted with VAT? Only way not to pay VAT through Alibaba is if I am VAT registered. I shouldn't have to pay VAT to supplier and also import VAT and duties should I? Thanks again, Josh
@LucaDavenport
@LucaDavenport 2 жыл бұрын
No worries, glad it was helpful! So things have changed quite a bit since I filmed that video. The UK government now forces companies like Alibaba to charge VAT at checkout and pass it on to HMRC. If you pay VAT at checkout, you shouldn't then also be charged the same import VAT again at customs, however if you do you can provide proof to HMRC and they will refund you for one of the payments.
@TrancerII
@TrancerII Жыл бұрын
@@LucaDavenport This video was amazing. But can you do an updated version since the changes on Alibaba? There appears to be a lack of info on this, which is quite huge that there is now the 20% VAT to pay at point of sale.
@shanxoxox8491
@shanxoxox8491 Жыл бұрын
@@LucaDavenport please do an updated version thank you ❤
@richmindset3315
@richmindset3315 3 жыл бұрын
Do we need an EORI number to import goods into the UK?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Yep, you will need a UK EORI number to import goods into the UK. It's free and easy to apply!
@richmindset3315
@richmindset3315 3 жыл бұрын
@@LucaDavenport Yes! i've just applied for it and i got it straightaway, Thank you so much!
@mal1k0
@mal1k0 2 жыл бұрын
What about those who are not VAT registered at the moment?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
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.
@jkim7042
@jkim7042 3 жыл бұрын
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
@LucaDavenport 3 жыл бұрын
Hey, glad you enjoyed the video! The only way to avoid those hidden 'admin fees' is to create a 'deferment account' with HMRC.
@jkim7042
@jkim7042 3 жыл бұрын
@@LucaDavenport Thank for your input. Not interested in deferment account. Would you recommend a company which charge reasonable fee and provide good service?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
My pleasure. Woodland group, Unity logistics & westbound global all provide competitive shipping rates and don't have high admin fees.
@dprasu143
@dprasu143 3 жыл бұрын
useful information .. Thank you so much
@Vanessaalex
@Vanessaalex 2 жыл бұрын
Hello, please what does it mean when trade tariff commodity code says 0.00%?
@LucaDavenport
@LucaDavenport 2 жыл бұрын
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%.
@Vanessaalex
@Vanessaalex 2 жыл бұрын
Oh great, please how do I find VAT for a product that’s 0.00%?
@Vanessaalex
@Vanessaalex 2 жыл бұрын
Thank you for your response
@stevenicholls3235
@stevenicholls3235 3 жыл бұрын
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!
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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!
@mvp2233
@mvp2233 2 жыл бұрын
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
@LucaDavenport
@LucaDavenport 2 жыл бұрын
Very roughly £250 based on the assumption the duties are around 10% and the shipping fee is included in that £850 value.
@derepd
@derepd 3 жыл бұрын
Hello I have a question I ordered something off DHgate for a total of £41 and it’s coming from China would I have to pay import tax
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Yep import VAT and Duties!
@derepd
@derepd 3 жыл бұрын
@@LucaDavenport thank you
@afymehmood5722
@afymehmood5722 3 жыл бұрын
Still a little confused. It's my first time importing goods. Am I required to pay 20 percent VAT on goods value, or goods value plus shipping plus insurance? I was under the impression it was just the goods value. Also do I prove value of goods through commercial invoice and separate invoice for shipping?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
So you're required to pay 20% VAT on the total value of the goods which is (Value of goods + Shipping + insurance). HMRC will work this out using the commercial invoice and shipping invoice (Bill of lading / BOL).
@afymehmood5722
@afymehmood5722 3 жыл бұрын
@@LucaDavenport Many thanks. One last thing. Are they any recent changes to suggest VAT is paid at alibaba platform or is it still usually paid once it arrives at UK port? Will HMRC rely on just above documents or any further information?
@shandeepgurung3108
@shandeepgurung3108 Жыл бұрын
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.
@LucaDavenport
@LucaDavenport Жыл бұрын
Hey, your courier / freight forwarder will likely pay on your behalf and then invoice you after delivery.
@nikoldicheva9696
@nikoldicheva9696 3 жыл бұрын
You are a star ! Thank you
@shanxoxox8491
@shanxoxox8491 Жыл бұрын
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
@pineapplesaredelicious8505
@pineapplesaredelicious8505 3 жыл бұрын
This was super useful. I’m trying to buy something on ebay that’s roughly £35. When I go on the government website, they state that non-excise items less than £135 will not have any custom duties? Does this mean my item will have no tax added on it?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Hey, if the item is under £135 then you will not need to pay import duties, however will still need to pay VAT. Instead of import VAT, this VAT should be charged by eBay at checkout.
@pineapplesaredelicious8505
@pineapplesaredelicious8505 3 жыл бұрын
@@LucaDavenport is this rule of not paying custom duties if under £135 applicable to all countries? The books I’m trying to get are from Japan?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Yep
@Paul-85PL
@Paul-85PL Жыл бұрын
Can I use this rule if I order goods under 135£ but I am going to sell them on UK eBay? What if I make this low value order a few times during a year.
@hannahkempster1315
@hannahkempster1315 3 жыл бұрын
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..
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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.
@kieranwhite4856
@kieranwhite4856 3 жыл бұрын
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?
@usmanfarooqofficial1178
@usmanfarooqofficial1178 3 жыл бұрын
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
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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.
@usmanfarooqofficial1178
@usmanfarooqofficial1178 3 жыл бұрын
@@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
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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.
@usmanfarooqofficial1178
@usmanfarooqofficial1178 3 жыл бұрын
Thanks you are good man
@adual3587
@adual3587 3 жыл бұрын
So the VAT the government gets will be a lot higher when you become VAT registered versus paying during the import process, 20% on every unit means you'll need to readjust your profit margins
@LucaDavenport
@LucaDavenport 3 жыл бұрын
Yep, once you are VAT registered you will likely end up paying more VAT to the government and your profit per unit will go down slightly so it's important to plan for that.
@afymehmood5722
@afymehmood5722 3 жыл бұрын
@@LucaDavenport is it possible to be Ltd company and not pay vat?
@timmypugh3850
@timmypugh3850 11 ай бұрын
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 ?
@LucaDavenport
@LucaDavenport 11 ай бұрын
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
@czedda5213
@czedda5213 4 жыл бұрын
Thank you so much, very useful
@tomdon7195
@tomdon7195 3 жыл бұрын
After you find the vat for the total cost for the product you importing , then you mark up the cost by let’s say 30% to get your profit then do you have to add 20% to the selling price and then you get the final selling price ? Or do you just add VAT for the cost of the products like you explained and then mark up cost by 30% and that’s the final selling price ?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
That will depend on whether you are VAT registered or not. If you are not VAT registered you will need to pay import VAT (input VAT) but you will not need to charge VAT on your sales (output VAT). Therefore you just need to work out your markup based on total landed cost of goods sold (which includes import VAT). No need to worry about adding 20% on top.
@tomdon7195
@tomdon7195 3 жыл бұрын
@@LucaDavenport but if the company is VAT registered,? So in my senario I am creating a spreadsheet for a company that imports cheese , I have the base cost based on exchange rate from euro to pounds and then from that I have to mark up the cost by 40% for my profit and times the average units sold per month , I’ve been told to add VAT in this scenario and I can’t get my head around it
@LucaDavenport
@LucaDavenport 3 жыл бұрын
If your company is VAT registered then you don't pay import VAT (input VAT) but will need to charge VAT on your sales (output VAT). If your business is VAT registered, you need to work out all profit margins on ex VAT prices. You might find this video helpful: kzbin.info/www/bejne/rqHRq2CeitF9rKM
@tomdon7195
@tomdon7195 3 жыл бұрын
@@LucaDavenport so it’s the VAT applied to the cost price + mark up which is selling price in my scenario or do I apply VAT on cost price and then markup the result to get my selling price
@JohnKalubi-rv4oc
@JohnKalubi-rv4oc 5 ай бұрын
Thank you very much
@wilcodenbrok8034
@wilcodenbrok8034 3 жыл бұрын
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?
@adnanasif1
@adnanasif1 4 жыл бұрын
Is there any other option available for VAT 7.5%? Is this a good idea if I ask my supplier for DDP?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
The 7.5% Flat Rate Scheme (FRS) is a type of VAT registration and applies to 'Output VAT' (the VAT charged on sales) not input VAT, such as import VAT. If you are not VAT registered, you will need to pay 20% import VAT.
@Amanda-re2vt
@Amanda-re2vt 3 жыл бұрын
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 ?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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
@Chopper894
@Chopper894 4 жыл бұрын
Are the goods held awaiting payment at a depot or do they just turn up and then you receive an invoice?
@LucaDavenport
@LucaDavenport 4 жыл бұрын
In most cases the freight company will pay the VAT & Duties on your behalf to get the goods through customs and then you will receive an invoice at a later date
@AA-uf3bl
@AA-uf3bl 2 жыл бұрын
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.
@LucaDavenport
@LucaDavenport 2 жыл бұрын
Nope you shouldn't have to as Belfast is in the UK
@AA-uf3bl
@AA-uf3bl 2 жыл бұрын
@@LucaDavenport Thank you for your prompt reply. The special arrangements for Northern Ireland after the damn Brexit was voted for were confusing me.
@riznofre5385
@riznofre5385 Жыл бұрын
very useful video
@ceolondon9117
@ceolondon9117 4 жыл бұрын
Hi, can anyone tell me please, if I can import other companies/brand overstock product into uk ?
@LucaDavenport
@LucaDavenport 4 жыл бұрын
That shouldn't be a problem as long as you have the brands consent to sell their product in the UK
@DoggyDailies-UK
@DoggyDailies-UK 3 жыл бұрын
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?
@LucaDavenport
@LucaDavenport 3 жыл бұрын
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.
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