Accountants For Luxury Retail Brands

Since the UK abolished tax-free shopping for overseas visitors in 2021, most in-store luxury sales carry standard 20% UK VAT. However, goods you export or ship abroad can be zero-rated with correct proof of export. In the US there is no federal VAT; instead each state applies its own sales tax, so cross-border luxury retailers must manage both systems carefully.

Luxury goods imported into the UK are subject to customs duty (rates vary by product classification) plus import VAT at 20%, reclaimable if you are VAT registered. In the US, imported goods attract customs duties set by the Harmonized Tariff Schedule. We help classify products correctly, apply for duty deferment, and structure supply chains to manage landed costs.

If your UK taxable turnover exceeds the VAT registration threshold you must register with HMRC. Selling into the EU or US may create additional obligations such as EU import VAT/IOSS or US state sales tax nexus, which can be triggered by economic thresholds even without a physical presence. We assess where you have registration duties in each market.

High-value stock should be valued at the lower of cost and net realisable value, with careful tracking of consignment, ex-display, and shrinkage. Accurate inventory accounting protects gross margins and supports insurance and financing. For cross-border brands, we also reconcile stock held in multiple jurisdictions and handle the currency translation that affects reported cost of sales.

Yes. Where stock is genuinely obsolete, damaged, or its net realisable value falls below cost, the write-down is generally an allowable deduction against UK Corporation Tax, and similarly against US taxable income. Documentation is essential. We ensure write-downs are evidenced and timed correctly so the deduction withstands HMRC or IRS scrutiny.

UK Corporation Tax is charged on profits, with the rate depending on profit levels. Planning includes capital allowances on fit-outs, R&D relief for product innovation, and efficient group structures for multi-entity brands. US brands face federal corporate tax plus state taxes. For transatlantic groups we plan transfer pricing and treaty relief to avoid double taxation.