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INC Law
INC Law, Solicitor-Advocate
Category: Law
Satisfied Customers: 13656
Experience:  LL.B, LPC, LL.M, Pg.Dip, Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
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What custom duty do you have to pay if you buy a laptop in

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What custom duty do you have to pay if you buy a laptop in the USA and ship it to UK?

Hi,

Thank you for your query. would you still like assistance with this?

Customer: replied 11 days ago.
Yes please

Hi,

Import duty is an amount you have to pay when importing goods into the European Union (EU) and thereby the UK. It is, therefore, a good idea to know the basics of rules and regulations regarding import duty when shipping from the USA, in order to know the total price of importing your goods.

You normally have to pay VAT and import duty from USA on goods imported (i.e. from non-EU countries) when they are first brought into the EU (i.e. UK). Failing to pay your duty and VAT promptly, you are likely to incur additional costs for storage until the goods are released upon receipt of your full payment.

When you buy products from your US supplier, you must ensure that sales tax is not added to the invoice. You supplier can issue an invoice without sales tax, as long as the address of the buyer is outside the US. Should it happen that you pay sales tax to your US supplier, it can be next to impossible to get that payment refunded.

When you import your goods from the USA, VAT is charged by HMRC at the same rate as if you bought the goods in the UK, and the rate is calculated based on the cost of the product, including bringing it to the UK. In fact, VAT is calculated based on the price stated on the commercial invoice, the duty and an estimated transportation cost from the US to the UK border. The latter is determined based on your actual shipping cost, but instead of using the full door-to-door cost, it is an estimate of the door-to-port cost.

I hope this answers your questions. If so, kindly rate the answer and provide feedback.

If you have any further questions, please do not hesitate to ask

Many thanks

Customer: replied 7 days ago.
Thank you for your response. I understand that now. I am about to open an Amazon sellers account in the UK to sell some souvenirs , I do have a limited company but it is VAT registered and is marked for IT consulting activity and not selling. Can I still trade from this company. Also, it asks on Amazon whether I would like to register as an individual seller or a Ltd company seller. I am not going to sell a lot of products to start with but in terms of taxation which option is better?

Hi,

You should not trade through this company if it is not set up for this purpose.

With reference to Amazon, you would be better served registering as a business seller.

As I have answered your original question, kindly rate the answer and provide feedback.

If you have any further questions, please do not hesitate to ask.

Many thanks,

Customer: replied 7 days ago.
If I change the nature of this company to other selling activities should that be ok. Also, as my company is VAT registered will I have to make any VAT payments to HMRC for any sales made. I am not selling more than 35 products a month so will not need a business seller account. I unnderstand the account type I need but the question I have is about what type of entity do I have to do this business and the options are Sole proprietor, state owned business, publicly listed business, privately owned business, charity, none, I am an individual. So if I register as an individual, how much tax will I pay as compared to registering as a seller with a private ltd company. Thanks.

If you change the nature of the company, that should.be ok.

If you charge VAT, you will.have to pay VAT. You will need to speak to your accountant for further guidance.

I cannot advise on any tax, only the legal side.

I hope this answers your questions. Kindly rate the answer and provide feedback.

Your question will not close and I will be happy to answer any follow up questions.

Many thanks

INC Law and 4 other Law Specialists are ready to help you