The tax paid on the import of goods is called import or custom duty. As well as raising income for the government, import duties are used to support foreign trade and policy and used to support UK industry by reducing foreign competition where needed.
You’ll be charged Customs Duty on all goods sent from outside the UK if they’re either:
- excise goods
- worth more than £135
If you’re charged Customs Duty, you’ll need to pay it on both:
- the price paid for the goods
- postage, packaging and insurance
If you’re sent alcohol or tobacco from outside the UK, you’ll be charged Excise Duty
If your business is importing goods from outside the UK, it is important to have an understanding on Customs Duty, Excise Duties and VAT as failing to do so can have a big impact on your finances