Inward/Outward Processing
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Save money on VAT and Duty using Inward and Outward Processing
If you are exporting or importing for the purposes of ‘repairing’ or ‘processing’, you could be eligible to save money on Duty and VAT.
Inward Processing (IP) allows companies to obtain VAT and Duty relief on goods temporarily imported into the UK.
Outward Processing (OP) allows businesses to temporarily export out of the UK, and you can also obtain VAT and Duty relief on the re-importing of those goods back into the UK.
To ‘repair’ something, is to return a good to its original working condition. This doesn’t include any improvements or enhancements to their original performance. Additionally, the goods you’re moving have to be ‘repairable’. This means that raw materials, such as minerals and chemicals, aren’t eligible for IP/OP, because they’re not really ‘repairable’, so to speak.
To ‘process’ something can be a lot broader. It can be anything from simply storing or repackaging goods, up to the most complicated manufacturing processes.
Who can apply for either?
There are certain requirements for companies applying for IP/OP. To read more about these requirements, the necessary documentation, and to apply, please visit the government websites below.