The other possible scenario is that your imports originated outside of the EU, but are being shipped across EU country borders on their way to the UK. In this case, duty should have been paid at the point the goods first entered the EU. If this is the case with your business imports, then you should make sure that the proof of payment of initial import duty is always with your goods as they move across Europe.

If the goods you’re moving originate from within the EU, or have already had duty paid elsewhere in the EU, then they are EU acquisitions. They are described as being in ‘free circulation’ within the EU. In this case you don’t usually pay import duty, but you do still need to have a commodity code. This is used to categorise the type of goods, for tax and regulation purposes. You can check the commodity code that should be on your imports, using the trade tariff tool on the UK government website.

Usually you don’t need an import license to bring goods in from the EU, either. However, in some regulated areas, like firearms, this will be necessary.

If you are importing from within the EU, and the goods are in free circulation, then you still need to add their value to your VAT return. You pay VAT at UK rates for any imported goods which are VAT liable. This is currently 20%. However, under certain circumstances you can reclaim the VAT, for example if you’re importing business supplies.

If you’re importing services rather than goods, then VAT rules apply here too. You will need to include the VAT amount on your VAT return, although in most cases this is credited back. There are different rules for some types of services, such as transport, events and catering. The full details can be found on the UK Government website.

Your goods should have a commodity code (as for EU imports), and be declared to customs. Usually your freight forwarder will do this for you. If you are importing restricted goods, you might need a license.

You will usually have to pay import duty (and sometimes associated tariffs) on goods imported to the UK from outside the EU. The exact amount payable depends on what you are importing, and it’s country of origin.

The rules regarding import tariff and the process for declaration are complex. The process for declaring the arrival of duty payable goods is described in the UK Government’s tariff notices(which are not for the faint hearted). And the tariff actually payable can vary, depending on the goods, their origin, their value and how they are to be used. Some goods are duty free, including books, software and some mobile devices, while some have lower ‘preferential’ duty applied depending on their country of origin.

Add to this the requirement that all calculations are done in GBP, according to the tax authorities’ guidelines, despite the fact that you probably paid for the products in a different currency, and it starts to get mind bogglingly complicated.

Because of this level of complexity, businesses importing duty payable goods to the UK often use the services of a freight forwarder or specialist importer. Not only does this keep you on the right side of the law, it ensures that you do not accidentally overpay duty, tariffs or VAT. If you decide to tackle declaring and paying import duty yourself, make sure you familiarise yourself with the UK government’s guide to the law first.

VAT is payable on the full value of goods imported from outside the EU. This means that you must convert the cost of goods to GBP, and then add in any other costs associated with their import such as the duty you have paid, and their insurance costs. You then pay VAT on the whole amount, directly to HMRC. The full detail on how to calculate the value of your goods is available on the HMRC website.

VAT remains at the 20% rate, although there are some exceptions. For example you can pay a lower rate on imports of art or antiques, and you may be able to claim back the VAT paid on business supplies.

No VAT is paid on services imported from outside the EU.