Import VAT

Import VAT is the transaction tax levied on imported goods. Subject to the normal rules, you can claim as input tax any import VAT you pay on goods, provided those goods are imported for the purpose of your business. To recover VAT as input tax, you must have official evidence of VAT paid on the imported goods. The normal evidence is the monthly certificate, known as form C79, which bears the trader's VAT registration number, plus a three-digit suffix. The whole number is known as the Trader Unique Reference Number (TURN).

Export VAT

If you sell, supply or transfer goods out of the UK to someone in another country, you may not need to charge VAT on them. Goods which are exported outside the European Union (EU) or sent to someone who is registered for VAT in another EU country are generally zero-rate, provided you obtain and keep the necessary evidence and comply with the rules and relevant laws.

Excise Movement and Control System (EMCS)

There are three categories of excise goods: alcohol, tobacco and energy products such as heating and motor fuels.

Authorised excise traders must be registered on SEED - the European System for the Exchange of Excise Data. They must also use the Excise Movement and Control System (EMCS) to dispatch or receive excise goods under duty suspension within the EU. All EMCS 'paperwork' is electronically created and transferred between dispatching member states and Registered Consignors and member states of destination and Registered or Temporary Registered Consignees. The documentation is known as electronic Accompanying Documents (eADs) and Reports of Receipt (RoRs).

Excise goods in transit must be accompanied by a printed version of the eAD or any other commercial document mentioning, in a clearly identifiable manner, the unique administrative reference code (the ARC code) assigned by EMCS to that movement.

The consignee must access the EMCS system and by following the online guidance and menus, find the ARC relating to the received goods and provide the report of receipt without delay, and in any event no later than five days after the goods are received.

Excise goods found to be travelling without the correct documentation may be seized, along with the vehicle carrying them.

Excise goods moving under duty suspension arrangements between EU member states must be covered by a financial security guaranteeing the excise duty. The security is provided by either the warehouse-keeper of dispatch, the last owner of the goods in the warehouse or the goods' transporter. Within the EU, your goods can be moved under duty suspension arrangements from a tax warehouse in one member state to a tax warehouse or approved trader in another member state. Goods released for consumption are liable for excise duties in the member state where they are put on the market. To avoid double taxation, reimbursement of the excise duty paid in the first member state is allowed. In the UK this is known as excise duty drawback.

An SAAD must accompany the intra-EU movement of excise goods that are duty-paid in the member state of dispatch, together with evidence that the duty has been secured in the member state of destination.

National Export System (NES)

The National Export System (NES) is a computerised process operated by HMRC for electronically capturing export declarations at all stages of the export process. Export declarations can be submitted either directly by the exporter or through a third party such as a freight forwarding agent - at any time before the export of the goods.

The NES procedure is particularly important for exporters of goods subject to Common Agricultural Policy (CAP) control and which qualify for export refund payments. Under the NES, there are also simplified and local export procedures.

Customs Freight Simplified Procedures and other simplified customs procedures

Customs Freight Simplified Procedures (CFSP) is an electronic customs administered system for processing imported third-country goods. It's designed to make trading easier if you import from outside the European Union (EU). Unless you are importing controlled goods, the system allows faster release of the goods at the point of entry, and the use of simpler customs declarations. Most third-country goods are eligible for CFSP.

Traders currently authorised to use CFSP, export simplified procedures and/or Single Authorisation for Simplified Procedures (SASP) must meet enhanced standards relating to accounting systems and records, customs compliance and financial solvency affecting any part of the business operating simplified procedures.

 

 

( linda )25 Oct,2011

Other News:
Import and Export VAT, EMCS for Excise Goods, Warehousing and CFSP
Radiation Screening at Ports and Airports
Penalties for Carrying Clandestine Entrants to the UK
The European Agreement Concerning the International Carriage of Dangerous Goods by Road
Other Requirements and Logistical Documentation
Documentation Required in order to Carry Dangerous Goods
The Classification of Dangerous Goods
The Dangerous Goods Vehicle Approval Certificate