Transportation of Goods Timeline

Navigating the process of importing goods into the UK requires a thorough understanding of the complexities at the border. This involves complying with various regulations, tariffs, and customs procedures. Importers must accurately classify their goods based on the UK Global Tariff, determining applicable duty rates.There are many operation aspects to consider including the requirement of an EORI number, as well as three main taxes you may have to pay to HMRC:

  • Customs duty

  • Import VAT

  • Excise duty

Steps to go through before Importing:

  • Register for a VAT Number. For a limited company you will need:
    • Company registration number
    • Business Bank Account details
    • Unique Taxpayer Reference
    • Company details such as annual turnover
    • Self Assessment
    • Corporation Tax
    • PAYE
  • Obtain EORI number (must be after VAT number). You will need:
    • Unique Taxpayer Reference
    • Companies House details | SIC code and Business Start Date
    • Government Gateway Login
    • VAT number
    • National Insurance number
  • Link VAT and EORI numbers
    • This will happen upon registration of the EORI number.
  • Obtain specific Northern Irish EORI number if importing to Northern Ireland.

During import.. Next Steps.

  • Inform your logistics partner of VAT & EORI numbers.
  • Provide written instructions for PIVA process if VAT registered.
  • Logistics partner handles customs declaration.
  • Declare value of goods (typically cost in the supply chain).

Postponed Import VAT (PIVA): Process where you do not have to pay import VAT upfront and wait to recover it. Instead you just need to include the values in your VAT return as an “in and an out”, effectively making it just a paper exercise and removing the cashflow burden.

Taxes to Consider:

  • Customs Duty:
    • Tariff based on trade agreements and goods category.
    • Charged as a percentage of import value including VAT.
  • Import VAT:
    • Applicable at the same rate as onward sale of goods.
    • Most companies use PIVA.
    • Based on value of imported goods including VAT.
  • Excise Duty:
    • Tax on certain goods like alcohol.

Payment of Taxes:

  • Logistics partner pays taxes using duty deferment account (DDA).
  • Taxes passed to importer via invoice.
  • Option: Apply for own DDA for direct payment to HMRC

Intercompany Terms:

  • Agree terms with customer.
  • Terms may affect responsibility for goods’ safety and tax payment.
  • Terms can include Exworks, DDP, DAP, etc.
  • Seek independent advice if needed (e.g., Goodwille’s customs partner, Evelyn Partners).

How can Goodwille assist?

  • VAT & EORI registration
  • Duty Deferment Account setup
  • Liaising with HMRC

All enquiries regarding Movement of Goods will be handled by our Governance and Finance team.

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