Import Tax Consultancy

ICS Global Services - Import Tax Services

Professional Import Tax Services

Here at ICS Global Services Limited, I can help you reduce your import tax costs by offering a range of effective and ethical import tax planning and problem-solving solutions. I have assisted clients from across the UK and abroad, drawing upon a wealth of import and export expertise to provide advice on import tax matters, helping clients save money while achieving their business goals.

I understand that corresponding with HM Revenue and Customs (HMRC) can be daunting and sometimes confusing. I will support you throughout the import process and provide support to ensure compliance with HMRC obligations. I will also prepare or assist with necessary documentation and will keep you updated throughout the whole process.

With over 30 years’ experience of providing import tax advice, I offer tailored and structured support to assist with your import activities.

Case Studies

Postponed VAT Accounting | Import Tax Blogs & Case Studies

ICS Global Services - Reducing Import VAT

Reducing Import VAT and Duties

Import VAT and duties are very important in international trade. Unfortunately, many companies and businesses pay more Import VAT and duties than is required by law. This could affect the landed cost of the imported goods and impact profit margins. As an independent consultant, I can provide a variety of ways that you can reduce customs Import VAT and duties. These are some examples of ways you can reduce the impact of import taxes on your business:

Identify the correct tariff that applies to your imports.
Maintain detailed import records and ensure the correct paperwork is presented to HMRC.
Identify the correct build-up of costs that will attract taxes and those that will not.
Take advantage of preferential trade agreements (if applicable) to reduce or eliminate duties and taxes altogether on your imported goods.
Utilise HM Customs special procedures that will enable you to pay a reduced amount of duty and import VAT.
Reduce cash flow by using Simplified Import VAT Accounting (SIVA) for your imports.

How To Pay Import VAT And Duties

You can pay Import VAT and Customs Duties to HMRC in several ways:

Pay at the actual time your products enter the UK via the Flexible Accounting System (FAS).
Using the new cash accounts for Customs Declaration Service (CDS) to cover import declaration payments, which will replace the current Flexible Accounting System.
By using deferred Import VAT and duty payments when you import goods or release goods from a bonded warehouse.
By using Postponed VAT Accounting (PVA) which lets you declare and recover import VAT on your VAT Return.

ICS Global Services - Flexible Accounting

What is the Flexible Accounting System (FAS)?

The Flexible Accounting System (FAS) let’s your company pay Import VAT and Duties at the time when your goods move across the border. HMRC accept payments by bank transfer, guaranteed cheque or bank draft.

FAS is an accounting sub-system which can be used to process import entries through a computer terminal linked to the Customs Handling of Import and Export Freight (CHIEF) system. CHIEF is being replaced by the new Customs Declaration Service (CDS) and your company will be able to use Cash Accounting to pay your Import VAT and Duties. The Flexible Accounting System will not be available after CHIEF is replaced by CDS.

What are Cash Accounts for the Customs Declaration Service (CDS)?

If your company uses the Customs Declaration Service (CDS), you can use cash accounting to pay for your Import VAT and customs duty. Your company can make payments into your cash account and authorise your clearance agent to use the account to pay Import VAT and duties.

Your company will have to be registered for CDS to use a cash account. Once your company is registered, you will automatically get a cash account. Your company can view your account and manage who has permission to use it in your customs financial accounts.

ICS Global Services - Deferred VAT Payments

What are Deferred VAT and Duty Payments?

Having a Duty Deferment Account lets your company make one payment a month for Import VAT and Duty by Direct Debit instead of paying for individual consignments. Your company can apply for a duty deferment account if you are an importer, someone who represents your company or if your company is releasing goods from a Bonded Warehouse.

There are new rules for duty deferment that apply in Great Britain (England, Scotland and Wales). Your company may not need a financial guarantee for your duty deferment account. If your company requires a new duty deferment account to use in Northern Ireland, you will need to apply for a Customs Comprehensive Guarantee.

If your company is not using Postponed VAT Accounting and is paying Import VAT via the Deferment Account, you will need to claim Import VAT as input tax on your VAT Return.

What is Postponed VAT Accounting (PVA)?

Postponed VAT Accounting (PVA) lets your company declare and recover Import VAT on your VAT Return. Accounting for Import VAT on your company’s VAT Return has significant cash flow benefits for your business. It means your company will declare and recover import VAT on the same VAT Return, rather than having to pay it upfront when the goods are imported and recover it later.

If your company is registered for VAT in the UK, you can account for import VAT on your VAT Return for goods you import into Great Britain and Northern Ireland. You can also account for Import VAT for goods your company move between Great Britain and Northern Ireland via a customs special procedure, such as:

customs warehousing
inward processing
temporary admission
end use
outward processing
duty suspension

Import VAT Blogs & Case Studies

Read my Import VAT Blogs and Case Studies to see how I have worked side by side with clients to tackle different import tax challenges. In each case, an appropriate solution was identified, developed, and implemented to manage import VAT.