Understanding your tax and duty responsibilities

Guidance on great.gov.uk

Understand tax and duty liabilities

Duties are a levy charged on goods entering a country, designed to protect local industries. Sales tax or VAT is a national charge in your export market, placed on most purchased products.

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Generally, duties and taxes aren’t paid by exporters. However, they will always impact the amount you charge your buyers and the price of your goods in the market. So, it’s crucial you’re clear on how much these charges are and that you’re on top of any paperwork.

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Calculate rate of tax and duty in your destination country 

Calculating the amount of tax and duty levied on your exported goods is an essential part of your pricing strategy. The rate is determined by your product, its country of manufacture and any trade agreements that might be in place.

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To find the rates of tax and duty for your product you can use our Check how to export goods service. Choose your destination country, find your product using the commodity code lookup and see all relevant taxes and duties. You can then calculate the costs for your complete consignment.

Guidance on great.gov.uk

Understand withholding taxes when exporting services

Withholding tax is sometimes levied on income from service exports by overseas governments. If a withholding tax policy is in place, your overseas client will retain a percentage of the money owed and pay it directly to the local government.

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Withholding tax is sometimes levied on income from service exports by overseas governments. If a withholding tax policy is in place, your overseas client will retain a percentage of the money owed and pay it directly to the local government.