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UK Exporters

Although distribution channels and international political situations can be volatile, UK goods are respected internationally and still much in demand. We’ll guide you through the rules and taxes payable on leaving the UK and in the destination countries. 

Contact Alistair Duncan

  • Alistair Duncan
    Meet the team

    The team

  • Start-ups. Entrepreneurs. SMES. Privately Owned & Listed Businesses. Multinationals. Public & Social Sector Organisations. 

    Who we can help

  • VAT Advisory. VAT Compliance. Cross-Border VAT. Customs Duties. International. International Presence. Brexit.  

    How we can help

SMOOTHING THE INS AND OUTS OF EXPORT TAXES AND DUTIES

The outlook for UK exporters has been complicated by Brexit, global supply chain issues (including the shortage of shipping containers) and a continually shifting global political landscape. Fortunately, one certainty you can rely on is our accurate, up to date advice on taxes and how they affect the goods, services or intangibles you’re exporting from the UK. 

Besides our own experts based here in the UK, we work with Accelerate, a Business Associate of Crowe Global, and The International Accounting Group (TIAG). Through these powerful networks, we have access to trusted partners and specialists around the world, ensuring we can support you with local knowledge and insights on the latest tax, import duties and regulations of the countries you export to. 

VAT ON EXPORTS TO THE EU

Following Brexit, and the UK’s withdrawal from the EU Single Market, exports to customers located in the EU is zero rated provided that the appropriate evidence to support the removal of the goods from the UK is maintained.   

For exports to VAT registered businesses in the EU, the Incoterms will determine whether you have any VAT obligations in the EU, and in most cases, we would recommend that Delivered Duty Paid (DDP) Incoterms are avoided.  For exports to private individuals, registration under the EU’s Import One Stop Shop (IOSS) or Union One Stop Shop (OSS) may be necessary. We’ll advise you on the VAT record-keeping requirements and registration obligations arising from your trade with the EU. 

Although the EU/UK Trade and Cooperation Agreement removed any tariffs for goods of UK origin being imported into the EU; where goods have been sourced from other jurisdictions, you or your customer may also need to pay import duty before the EU customs authorities will release the goods. 

VAT ON EXPORTS TO THE REST OF THE WORLD

There is no VAT chargeable on your exports to customers outside the EU, so you can zero-rate your invoices as long as you keep proof that your goods or services have been exported. 

If your exports pass through an EU country whilst en route to a non-EU customer, they remain zero-rated for VAT. In this case your records must show the final, non-EU destination country. You or your customer may also need to pay import duty before the local customers authorities will release the goods. 

VAT AND GST

You are probably familiar with VAT, but what is GST? Goods and Services Tax (GST) is another value-added tax that’s essentially very similar to VAT and is applicable or exempt depending on the items concerned. GST rates are generally lower than VAT but vary from country to country. GST is used in around 160 countries worldwide, with some of the most notable being Australia, Brazil, Canada, India, South Korea, Spain and Vietnam. 

We can advise you on both VAT and GST, including whether you need to register, dealing with representatives, withholding payments and to VAT refunds. With VAT and GST being applied increasingly worldwide, it’s more critical than ever to understand and minimise the indirect tax consequences of international trade for your business.  

CUSTOMS DUTY OBLIGATIONS

Customs duty is a tax that is largely overlooked by businesses and yet it directly impacts their profitability.  As a result, Customs Duty is like any cost within the supply chain that should be analysed and monitored.   

We can assist with support around ensuring the correct tariff classification is shown and that the appropriate origin status and preferential duty rates are applied.  In addition, where appropriate, we can advise on the availability of customs duty reliefs.  

UK GOVERNMENT EXPORT FINANCING AND ADVICE

Finance can be available through UK Export Finance (UKEF) with working capital support, bond support and credit insurance for UK exporters, and UKEF buyer credit guarantees, direct lending and credit and bond insurance for overseas buyers. UKEF works with all sizes of UK exporters across all sectors, from capital goods and services to intangibles.  

The Department for International Trade website also offers advice and updates on essential aspects such as international trade contracts and documentation, international trade terms and how to physically forward your goods to their destination. Government information on export licences is available here. 

  • AAB have worked closely with us from the beginning of StormGeo Ltd over five years ago. We have found them to be a valuable partner to our business as they provide us with excellent financial, business & taxation advice.

    Alan Binley, StormGeo

  • AAB proactively assisted in addressing any potential risk areas relating to Corporate Criminal Offence legislation in our business and ensured a successful solution was implemented in conjunction with our legal, tax and finance teams.

    Dave Aitken, Interwell

  • I was particularly impressed by AAB’s appreciation of the strategic importance of the deal. Additionally, the AAB team quickly understood the very complex structure of the target and were pivotal in advising on how best to approach this.

    Ross Baxter, Harbro Limited

  • Working more closely with the team has been a real pleasure. They are open and straightforward, eager to understand our requirements and provide solutions to issues that arise. Overall it has been a refreshing experience!

    Karen Williamson, Apache Corporation

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  1. Blog8th Dec 2022

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    Say hello to HMRC’s new VAT penalty & interest rules

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