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Reminder - Importing goods (VAT and Customs Duty) from 1 January 2021

Importing goods (VAT and Customs Duty) from 1 January 2021

Loughborough University is not a large importer of goods, with around 200 imports per year from the EU and 200 from other countries across the world.

However, when the Brexit transition period ends on 31 December 2020, there will be some changes we need to consider when importing from EU countries.

We anticipate that there will be a customs duty exemption for goods below £135.Therefore, for goods under £135 there should be no difference to current process and costs.

Key changes for goods over £135:
• For goods subject to Customs Duty, this Duty will be charged as a % of the value, depending on nature of the goods imported. This will be added to the cost borne by the budget holder.
• A Customs declaration form must be submitted to HMRC. There will be a small charge for this (circa £35)

Key actions and process differences:
• A freight forwarder should typically manage the processes and payments at the border on our behalf. We are currently finalising a mandatory contract for a freight forwarder, which would simplify the process further as they would have detailed knowledge of Loughborough University. They may require you to quote the University’s EORI number GB115079431000 and VAT number GB 115 0794 31.
• If asked, advise the freight forwarder that the University has Opted Out of the Postponed VAT accounting scheme. You must not under any circumstances reference that the University has Opted In to the postponed VAT accounting scheme.

Other points to note:
• Delivery of goods could be delayed, especially initially, as goods will be subject to customs controls and there could be delays at the UK border.
• Goods subject to VAT will bear a 20% UK Import VAT charge. This will be added to the cost borne by the budget holder.

For the majority of colleagues, the guidance is therefore continue as normal as small transactions are unaffected. However, for significant imports please contact the University tax team at Tax@lboro.ac.uk if you have any queries.

Posted by
Frazer Holmes (extension 222079)
Posted on
Wednesday, 9 June 2021 at 16:31 GMT
Posted in
general

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