What VAT do we add on when selling baby milk powder to China?
We are beginning to price for exporting Baby Milk Powder to China from the UK, but we are unsure what VAT to add onto the quote to our clients.
Could you help?
Also is there any export duty?
There is no VAT to add on sales to China. You will need to keep proof of export.
There is no export duty added by the UK Government when you sell to China.
I am assuming you are selling to consumers directly through cross border ecommerce and this is not a business to business wholesale order. There are strict compliance rules applied to baby formula to be imported into China as part of normal business to business trade.
Selling direct to consumers for personal consumption can attract either personal parcel tax, or reduced rates through cross border ecommerce and Free Trade Zones (FTZ). The value of the product and/or the value of the orders will determine the best logistics solution to maximise your profits.
Fell free to get in-touch for further clarification
Steven Hope – Chinese eCommerce Specialist