Importing from Denmark to the UK
Discussion
Hi all,
With my focus on bringing items in from outside the EU, there are now some potential products that are nicely priced for me to consider right here in Europe. I don't know much at all about this aspect though.
Some products I've seen are advertised at X euro's retail and show a VAT amount of 25% which is then added to give a 'total' retail price.
If I wanted to bring in the item, perhaps as a one off to evaluate for now, what extra costs would I be looking at? I 'automatically' jump to the idea of having to add on UK VAT, but seeing as it's EU VAT and 25% etc I'm not sure what applies in this case.
Example
Product = 100 Euros.
Danish VAT at 25% = 24 Euros.
I need to of course add in shipping charges. Is there any import duty to add? I know this varies for the type of product so I'm guesstimating 10%.
So currently in my head I have 125 Euros to buy the item, plus shipping, lets say 50 Euros, then 10% import tax, then UK VAT of 17.5% on top of that and pehaps the usual customs clearance fee of like another £8 to 10. Giving me a landed at my door cost of around 236 Euros. I can then convert to GBP via XE.com for the sterling amount.
Any clarification on the above would be well appreciated
Cheers, Dennis.
The Danish company is of course VAT registered, so would they then sell to me that product minus the 25% Danish tax ?
With my focus on bringing items in from outside the EU, there are now some potential products that are nicely priced for me to consider right here in Europe. I don't know much at all about this aspect though.
Some products I've seen are advertised at X euro's retail and show a VAT amount of 25% which is then added to give a 'total' retail price.
If I wanted to bring in the item, perhaps as a one off to evaluate for now, what extra costs would I be looking at? I 'automatically' jump to the idea of having to add on UK VAT, but seeing as it's EU VAT and 25% etc I'm not sure what applies in this case.
Example
Product = 100 Euros.
Danish VAT at 25% = 24 Euros.
I need to of course add in shipping charges. Is there any import duty to add? I know this varies for the type of product so I'm guesstimating 10%.
So currently in my head I have 125 Euros to buy the item, plus shipping, lets say 50 Euros, then 10% import tax, then UK VAT of 17.5% on top of that and pehaps the usual customs clearance fee of like another £8 to 10. Giving me a landed at my door cost of around 236 Euros. I can then convert to GBP via XE.com for the sterling amount.
Any clarification on the above would be well appreciated
Cheers, Dennis.
The Danish company is of course VAT registered, so would they then sell to me that product minus the 25% Danish tax ?
The Danish supplier should be able to provide you with the goods free of Danish VAT provided -
you are registered for VAT in the UK
you supply the Danish supplier with your VAT number
YOU will have to declare UK VAT on these goods on your VAT return as Output VAT but you will also reclaim ithe same VAT on the return as Input VAT - so you actually don't pay any VAT on this transaction. This method is used by HMRC to monitor EU Imports and Exports.
You will probably have to comple a quarterly EU Sales List as well.
you are registered for VAT in the UK
you supply the Danish supplier with your VAT number
YOU will have to declare UK VAT on these goods on your VAT return as Output VAT but you will also reclaim ithe same VAT on the return as Input VAT - so you actually don't pay any VAT on this transaction. This method is used by HMRC to monitor EU Imports and Exports.
You will probably have to comple a quarterly EU Sales List as well.
Eric Mc said:
The Danish supplier should be able to provide you with the goods free of Danish VAT provided -
you are registered for VAT in the UK
you supply the Danish supplier with your VAT number
YOU will have to declare UK VAT on these goods on your VAT return as Output VAT but you will also reclaim ithe same VAT on the return as Input VAT - so you actually don't pay any VAT on this transaction. This method is used by HMRC to monitor EU Imports and Exports.
You will probably have to comple a quarterly EU Sales List as well.
Hi Eric Mc,you are registered for VAT in the UK
you supply the Danish supplier with your VAT number
YOU will have to declare UK VAT on these goods on your VAT return as Output VAT but you will also reclaim ithe same VAT on the return as Input VAT - so you actually don't pay any VAT on this transaction. This method is used by HMRC to monitor EU Imports and Exports.
You will probably have to comple a quarterly EU Sales List as well.
Thanks for the reply, I've read your responses in other threads and may I just quickly add I appreciate the good advice and feedback you give.
Currently, I'm not UK VAT registered. I haven't as yet officially launched my forthcoming venture. I've had a limited company for the last 4 years but I've only ever done very minimal stuff with it. My background is Financial IT (technical, not accounting) and I do know the 'gists' of accounting principles and requirements. I know 'usually' you need to hit the VAT threshold and then you apply for being VAT registered. However, I am thinking to just go for the Voluntary VAT scheme, my accountants can get that setup for me, and give me some pointers on how to track things correctly via my accounting software (Quickbooks).
So, in this instance, if I was to go ahead and purchase today lets say, I'd pretty much pay what I put up in my example, right? The good thing is I've spoken now with the company and I potentially will be a reseller/small dealer for them and he's given me a good indication of that pricing.
I think I'm going to go ahead with registering for Voluntary VAT and then approaching them again.
Is there any real advantage in not going for voluntary VAT at this stage?
Thanks, Dennis.
On the whole. most businesses are better of registering for VAT. The main reason why a busness does not register until it has to is the "hassle factor" of having to complete returns.
Another main reason why a business might not want to register until it has to is if its main customer base is made up of non VAT registered individuals. This means that those customers cannot reclaim any VAT charged when they buy stuff from you, which means that a non-VAT registered competitor could undercut you with his prices.
Another main reason why a business might not want to register until it has to is if its main customer base is made up of non VAT registered individuals. This means that those customers cannot reclaim any VAT charged when they buy stuff from you, which means that a non-VAT registered competitor could undercut you with his prices.
Thanks for that,
I'll be selling direct to end user retail, So I'm thinking to actually go ahead. I've got no worries with tracking the VAT and doing my accounting ready to give over to my accountant etc. I'm just thinking bright eyed, in that I can claim back VAT on expenses and stock purchases etc seeing as 80% of what I'll be doing will be imported items.
Based on that, would you say go for the Voluntary VAT scheme or not?!
Cheers, Dennis
I'll be selling direct to end user retail, So I'm thinking to actually go ahead. I've got no worries with tracking the VAT and doing my accounting ready to give over to my accountant etc. I'm just thinking bright eyed, in that I can claim back VAT on expenses and stock purchases etc seeing as 80% of what I'll be doing will be imported items.
Based on that, would you say go for the Voluntary VAT scheme or not?!
Cheers, Dennis
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