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UK to USA import Tax

Aidenstrees
New Member
4 0 0

Hello

 

I am a UK based seller and just sat up my shop.

 

From past experience I get a lot of interest from USA customers so I would really like to offer international shipping to the USA.

 

How do I ensure that my customer won't be asked to pay any import duty/tax when the item arrives at customs?

 

My items are not very high value (£60-£100) so I wanted to know is there anyone here who is UK based and sells to the USA?

 

What do I need to do? If anything at all.

 

Thank you 

Accepted Solution (1)
Moira
Shopify Staff
2040 222 320

This is an accepted solution.

Calculating import duty and taxes can be a bit complex, as it depends on various factors such as the type of product, its value, and the specific customs regulations of the destination country. 

 

 

 

The main focus would be to determine the correct Harmonized System (HS) code. The HS code is an internationally recognized system that classifies products for customs purposes. You'll need to find the appropriate HS code for your product, which will help determine the applicable duty rates. You can search for HS codes on government websites.

 

Moira | Social Care @ Shopify
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Replies 8 (8)

Moira
Shopify Staff
2040 222 320

Hey @Aidenstrees,

 

To ensure that your customers in the USA won't be asked to pay any import duty or tax when the item arrives at customs, there are a few steps you can take:

 

  • Declare the value accurately: When shipping internationally, make sure to accurately declare the value of the items on the customs declaration form. Understating the value may raise suspicions and lead to additional charges for the recipient.
  • Research customs regulations: Familiarize yourself with the customs regulations and import duties/taxes for shipping from the UK to the USA. Each country has its own rules and thresholds for import duties, so it's important to understand them to avoid any surprises for your customers.
  • Consider using a delivery service or courier: Some shipping services offer options to prepay import duties and taxes on behalf of the recipient. This can help ensure a smoother delivery process and avoid unexpected charges for your customers. Research different shipping providers to see if they offer this service.
  • Communicate with your customers: Clearly communicate on your website or during the checkout process that you will handle any import duties or taxes for shipments to the USA. This can help set expectations and provide reassurance to your customers.

 

It's always a good idea to consult with a professional, such as a customs broker or international shipping expert, for specific advice tailored to your situation. They can provide guidance on customs regulations, taxes, and duties, ensuring that you comply with all necessary requirements!

Moira | Social Care @ Shopify
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Aidenstrees
New Member
4 0 0

Thank you for your detailed response. I really wish their was an easy way to collect and pay taxes and import at checkout.

 

I did consider just stating that anyone ordering from the USA are responsible for paying import duty and taxes if requested.

 

But I can just see that leading to a situation where the buyer just refuses to pay the fees and then I don't know what happens.

 

I guess the parcel will just be destroyed and the customer might then come for a refund.

 

 

Moira
Shopify Staff
2040 222 320

You're welcome! I understand your concern about the potential issues that may arise if the buyer refuses to pay import duties and taxes. To address this, you have a few options:

  • You can calculate an estimated amount for import duties and taxes and include it in the shipping cost that the customer pays at checkout. This way, you can cover the fees upfront and ensure a smooth delivery process for your customers.
  • Offer a "Delivered Duty Paid" (DDP) option: DDP means that you, as the seller, take responsibility for paying any import duties and taxes on behalf of the buyer. This can be an attractive option for customers, as they won't have to deal with any additional fees upon delivery. However, it's important to factor in these costs when setting your prices.
  • If you decide to make the buyer responsible for import duties and taxes, clearly state this policy on your website and during the checkout process. Make sure customers are aware of their potential obligations before placing an order. This can help manage expectations and minimize any surprises.

In situations where the buyer refuses to pay the fees and the parcel is returned or destroyed, it's advisable to have a clear refund and return policy in place. You may need to handle each case individually, considering factors such as the reason for refusal and the condition of the returned items. It's always a good practice to communicate openly with the customer and work towards a mutually satisfactory solution.

 

Remember, consulting with professionals or seeking advice from experienced sellers can provide valuable insights specific to your business and help you navigate any challenges that may arise!

Moira | Social Care @ Shopify
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Aidenstrees
New Member
4 0 0

Thank you.

 

This is probably not going to be a straight forward answer but how would I go about calculating the import duty and taxes?

 

Is there some kind of online calculator available that I can use?

 

Regards

Aiden

Moira
Shopify Staff
2040 222 320

This is an accepted solution.

Calculating import duty and taxes can be a bit complex, as it depends on various factors such as the type of product, its value, and the specific customs regulations of the destination country. 

 

 

 

The main focus would be to determine the correct Harmonized System (HS) code. The HS code is an internationally recognized system that classifies products for customs purposes. You'll need to find the appropriate HS code for your product, which will help determine the applicable duty rates. You can search for HS codes on government websites.

 

Moira | Social Care @ Shopify
- Was my reply helpful? Click Like to let me know!
- Was your question answered? Mark it as an Accepted Solution
- To learn more visit the Shopify Help Center or the Shopify Blog

Aidenstrees
New Member
4 0 0

Thank you!

 

That's a really useful tool and thankful it says that I do not need to pay any tax or duty to ship to the USA from UK.

 

It will help me with setting up out countries too.

 

Thanks for your advice.

Moira
Shopify Staff
2040 222 320

Great to hear! Don't hesitate to reach back out if you require any further assistance as you continue to work on your store. 

All the best,

Moira | Social Care @ Shopify
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Rostislav
Shopify Partner
161 8 22

Hi Aidenstress. 

I love these Shopify replies -all about nothing. 

But now to your question:

There are two types of consumer indirect taxes in the USA  sales tax and use tax , which is technically the same but payable by the seller (sales tax) or the consumer (use tax). The obligation to collect sales tax (economic nexus) arises in case when you sell other the threshold to a particular state (100 000 USD or 200 sales etc)  or if you are physically present in the said state. that way most US online sellers do not have to collect sales tax (and they do not). So the consumer , if he/she buys from outside the state have to pay local use tax (which percentage wise is the same as sales tax). You do not need to collect and pay sales tax yet (unless you reach the threshold of course) .

When goods are imported the threshold for duties is very high in the US - 800 USD , so no worries here either. 

Just start selling there , the consumers are OK to pay use tax directly to IRS . some of them are on annual scheme (you pay a set amount annually and you do not bother with use tax) . 

And if you decide to start selling to EU - do contact us we will register you for the special IOSS scheme so you will have no problems with EU customs  - visit us www.easproject.com  

 

 

www.easproject.com - the best EU and UK VAT compliance solution.