VAT & Customs: Processing Relief
Businesses which import goods to process before re-exporting or putting finished product into free circulation within the UK can avoid or reduce a VAT and duty cost by being authorised to use IPR.
In order to work out whether this could be a benefit to you, you should review the commodity codes for the component parts and that of the finished items.
If goods are re-exported after processing, duty will not be paid on the initial importation.
To claim IPR, an importer must be authorised by HMRC and a guarantee will be required. Strict record keeping requirements will apply.
How we can help
If goods are being brought into the UK for processing, it will be necessary to apply for Inward processing relief (“IPR”). We can assist with the applications and also undertake implementation and periodic reviews.
Similarly, businesses sending goods overseas for manufacture or assembly and return to stock can apply to use OPR which avoids the imposition of duty.
How we can help
If you are exporting goods for processing, Outward Processing relief (“OPR”) should be applied. We can provide advice on the procedure.
We also offer...
VAT & Customs Helpline
- Set fee for first half hour
- Reduced consultancy fees
- Agreed fees for work
Set monthly fee for telephone advice.
We are able to assist businesses in dealing with disputes arising from HMRC inspections or queries.
We can provide bespoke training to suit the requirements of your business on both VAT & Customs issues.
We have an international network of advisers who can provide advice and support as required.
Get in touch?
We would welcome the opportunity to discuss your needs with you. For a free introductory discussion please contact Terri Bruce tel: 07929 186391 or complete our enquiry form and we will get back to you.