What You Need to Know If You Want to Operate as an Importer Of Record IOR in UK
The protracted issue of Brexit is still far from a solution. If it materializes then customs laws for the UK will definitely change. For now, the EU customs directives are being followed at the UK seaports. Therefore, we will also discuss the things that you need to know to be an Importer of Record IOR for UK in the light of existing laws.
If you are an Importer of Record (IOR) who is not registered in the UK or any other EU country, then your shipment will be categorized as DDP (Delivered Duty Paid) shipment. So, like any other DDP shipment, the shipper (Importer of Record) or the seller has to bear all the risk and expenses including the taxes on the shipment goods.
Reclaiming VAT for Your Shipment in the UK (Importer Of Record UK)
Any seasoned Importer of Record (IOR) tries its best to reduce the tax payments. UK offers tax leniency to foreign importers through VAT reclaims policy. There are two ways through which you can file for VAT reclaim as a non-EU Importer of Record (IOR).
Apply for VAT Registration in the UK for Importer Of Record UK
You need to prior apply for VAT registration in the UK to avail any tax relief. However, many non-UK Importers of Record (IOR) remain hesitant to file for this registration because they don’t want to charge VAT to their local clients (based in the UK).
Use Single Point of Clearance for Importer of Record UK
If you don’t want to sign up for VAT registration in the UK, then you have another option to lessen the tax burden i.e. take the route of a single point of clearance. In this case, the Importers of Records can recover the import VAT by translating its benefits to the end customers.
VAT Refund Is a Lengthy Process
The UK authorities take a lot of time to authorize a VAT refund. They investigate each and every case of importation separately through the entire document trail. This process usually takes somewhere between four and six months.
If you need to import something into the UK without dealing with all the red tape and tax exemption process discussed in the above section, get in touch with any seasoned Importer of Record (IOR) service. From customs clearance to taxes, they will take care of every phase of importation on your behalf. get a Quote.