Easy Customs Clearance with label.co.uk
Since 1 January 2021, businesses in the EU trading with companies based in the UK have had to comply with additional export requirements. The same applies to businesses importing goods into the UK. To make the process of exporting labels faster and more straightforward, label.co.uk has implemented measures to simplify customs procedures.
After completing the necessary certification processes, our online printing company was successfully registered as an approved exporter. This means we are authorised to use simplified customs declarations. As an approved exporter, we can dispense with physical customs clearance at the office of export before goods are shipped. Instead, we submit declarations electronically and receive the export accompanying document digitally. This allows our labels to be released automatically and handed over directly for export. As a result, a process that previously took up to two days has been significantly streamlined.
What Is VAT Charged On?
VAT may be charged on:
- goods and services (a service is anything other than supplying goods)
- the sale of business assets
- commission
- business goods used for personal reasons
- non-cash transactions like bartering, part exchange and gifts
Current VAT Rates
*insert Graphic that needs updating here*
VAT and Customs Duties Explained
VAT (Value Added Tax) is a consumption tax. The standard UK VAT rate is 20% and applies to most goods bought, sold, imported or exported in the UK. There are, however, some exceptions. For example, domestic fuel such as gas and electricity is subject to a reduced rate of 5%, while books, newspapers, brochures and public transport services are zero-rated. Labels imported into the UK are generally subject to the standard VAT rate of 20%.
Customs duties may apply to goods valued at more than £135, as well as excise goods such as tobacco products, alcoholic beverages and certain energy products imported into the UK.
In these cases, both VAT and customs duties may be payable.
However, when ordering labels from label.co.uk, you do not need to worry about customs procedures. We manage the customs process on your behalf, helping to ensure a smooth delivery experience without unexpected complications.
Important VAT Information for Businesses
Not all businesses are registered for VAT. HM Revenue & Customs (HMRC) sets an annual turnover threshold above which VAT registration becomes mandatory. Businesses whose turnover falls below this threshold may choose to register voluntarily. Only VAT-registered businesses can submit VAT returns to HMRC. Through their VAT return, eligible businesses may be able to reclaim VAT paid on imported goods as input tax.
We recommend keeping detailed records of imported purchases, including invoices, contracts and supporting documentation, to make the reclaim process as straightforward as possible.
You can find further information about VAT returns on the official HMRC website.
When purchasing services from suppliers outside the UK, VAT-registered businesses may also need to apply the reverse charge mechanism. Under this system, the recipient records both the purchase (input VAT) and the supplier’s sale (output VAT) on their VAT return. In many cases, these entries offset one another.
Questions About VAT or Customs?
If you would like further information about VAT, customs procedures or deliveries between the EU and the UK, our team will be happy to help.
Call us on +44 203 588 1080 or email info@label.co.uk.