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Posted Thu, 02 Jan 2025 17:17:49 GMT by artmanx
I am a sole-trader and VAT unregistered operating in the UK. My supplier of goods is in the Czech Republic. My customer is in the UK.
My customer has requested a quote for goods and has asked for 1 year extended warranty on said goods. My supplier charges me for a year of additional warranty at an EX-Works cost of 1,000 GBP (VAT not included). I intend to charge my customer 1000 GBP + a markup.
Let us ignore import VAT and duties on the goods themselves.
What is the import VAT+duty I would have pay for 'extended warranty'?
I am confused if it is considered a supply of insurance and what that entails?
Posted Fri, 17 Jan 2025 13:14:25 GMT by HMRC Admin 13 Response
Hi artmanx
Import VAT and duties are charged on customs value of the goods at the time of importation. 
Please see guidance at Working out the customs value of your imported goods on how to work out the customs value for Customs Duty, import VAT and trade statistics if you’re an importer or clearing agent.
Thank you

 

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