HMRC has updated its guidance on bringing commercial goods into Great Britain in your baggage.
If you’re bringing in goods that you intend to sell and use for your business, you need to be aware of the customs and VAT implications.
Defining Merchandise in Baggage
In contrast to consignments of goods brought in by a transport operator, the regulations relating to commercial items you have brought into Great Britain independently either in your accompanying baggage or in a small vehicle.
New safety declaration requirement from 2022
The guidance notes that as of 1 January 2022, you will need to submit a safety and security declaration if you bring in Merchandise in Baggage if those goods are valued over £1,500 or are subject to import controls or excise.
Declaring commercial goods
The HMRC guidance clearly notes that commercial goods must be declared and that “there is no duty free allowance for goods you are bringing in to sell or use in your business”.
That is an important point to bear in mind. Following Brexit, business operators may be looking for ways to circumvent red tape on imports. However, goods are not exempt from customs controls because you bring them in yourself.
In order to comply with customs requirements you will require an EORI number and ensure you have any necessary supporting documentation.
Full or simple declaration?
You can make a simple online customs declaration if you are coming into Great Britain with goods with a value under £1,500, weighing under 1,000 kg. The goods cannot be restricted or subject to excise.
If your goods are valued over £1,500 or weigh over 1,000 kg you must make a full declaration. Goods that require a licence or are subject to excise also require a full declaration.
Reclaiming import VAT
Note that you must make a full declaration in order to be able to account for import VAT on your VAT return.
Filing a simple declaration will thus mean you lose the opportunity to reclaim VAT. A full declaration is also required if you are deferring duty payments.
Never miss a VAT reclaim opportunity
Importing commercial goods invariably involves red tape and potential VAT and tariff payments. Even when you import those goods yourself.
VAT IT will ensure that you never miss an opportunity to fully recover import VAT and provide expert guidance on importing and exporting commercial goods efficiently and cost-affordably.