Import Duties and Customs Fees
What is Import Duty?
Import duties are taxes collected on imports and exports by the Country’s custom authorities. It is usually based on imported good’s value. Depending on context, the import duty may also be referred to as customs duty, tariff, import tax or import tariff.
If you are operating a business internationally, it is important to understand the import taxes that you might be charged, both as a buyer as well as a seller. If you’re purchasing your Product from a supplier who makes them from outside of Your Country, there will be import Duties / charges applied upon the delivery of the items.
When Import Duty Apply?
When You buying products from outside the any other region, All the duties and taxes are to be paid in order to released the items into the country. The amount of duty that you are required to pay will be dependent on the declared value of the goods and the type of garment, you’re importing.
Because the government of the destination country set the rates of import tax and publishes these rates online, it is possible to calculate how much you might owe in the advance. If you have any reservation about the import tax, your supplier will likely have information on it which they will be able to give you upon the placement of your order.
Can I Reclaim Import VAT What I Paid?
In the Region, if you are VAT registered and you have the supplier detail your EORI number on the commercial invoice. you could reclaim the any import VAT that you pay. Although still you have to pay the import VAT to release the goods from the customs, it is easy to claim this back through your normal VAT return.
How to manage import taxes costs?
As a seller, you need to be aware of the import taxes too that your customers may be liable for, if you are selling to people outside of your region. It is always best to warn the international customers that they should be aware of possible customs duties. This can be done via delivery section of your website, giving your customer a heads up that they may have to pay additional duties when purchasing your product.
As your business has no control over these charges, it is courteous to ensure the customer is aware that they might be imposed by their country, and to give them a chance to look into them before making the purchase.
Edited: Sourced By @Howthorninc