Portcullis ISC
4 Contributions by Portcullis ISC Experts
PRACTICE NOTES
As a rule, goods entering Great Britain (GB) are subject to VAT. Import VAT is levied on goods brought into GB from outside the UK (or into Northern Ireland (NI) from outside the EU) at the rate that would apply to an equivalent UK supply. Importers must declare the goods and account for any import duty and import VAT. Items may incur both import VAT and customs duty, or just one of them. This Practice Note focuses on import VAT, and only refers to customs duty where it influences the import VAT liability. For commentary on customs duty, see Custom duties: De Voil Indirect Tax Service [V17.1]. Certain goods, such as alcohol and tobacco, are also subject to excise duty.
Position from 1 January 2021
The UK ceased to be an EU Member State on 31 January 2020. On that date, an
Tax
PRACTICE NOTES
For VAT purposes, an intermediary is a person who makes arrangements for, or facilitates, a supply (being the main, or underlying, supply) between two other people.
An intermediary can equally be called an agent or a broker, and, particularly in an EU context, a commissionaire. HMRC defines an agent as a person who organises supplies of goods or services between the agent’s customer (that is, the principal) and a third party by:
procuring goods or services for the principal (acting as a buying agent), or
identifying customers for the principal to sell to (acting as a selling agent)
Accordingly, agents are invariably connected with two distinct supplies:
the supply of goods or services between their principal and the third party, and
the provision of their own agency services to the principal, for which a fee or commission is normally
Tax
PRACTICE NOTES
Exports for VAT purposes
From 1 January 2021, for VAT purposes, an export refers to a supply of goods dispatched from Great Britain (GB) to any destination outside the UK, or from Northern Ireland (NI) to a non-EU country outside the UK. There are two categories of exports: direct and indirect. For VAT purposes, a direct export takes place where the goods are removed under the control of, or on behalf of, the supplier; by contrast, an indirect export is where removal occurs under the control of, or on behalf of, someone other than the supplier, most commonly by the overseas customer. Do please note that the customs definitions differ: a direct export is when goods leave the EU without travelling through another Member State, whereas an indirect export is when goods depart the EU via another Member State. This Practice Note focuses on
Tax
PRACTICE NOTES
Updated in July 2024
Introduction
The United States ranks among the world’s most competitive economies. It remains the largest national market, posting an estimated 2020 GDP exceeding US$22.3trn, and performs strongly on the World Bank’s Ease of Doing Business Index. Many overseas businesses choose to build a footprint in the US for persuasive reasons. Chief among these are entry to a powerful economy and cutting-edge technology, coupled with political stability and a mature legal framework supported by established courts, regulators and public authorities. While the US tax system can be intricate, working with a US attorney can make this obligation more manageable. There are multiple options for structuring operations in the US. This guide sets out key matters a new venture ought to weigh before commencing activity in the country. It is not exhaustive, and tailored US legal advice should always be obtained prior to
Commercial
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