Can we be both the Exporter and the Importer of the same shipment?

[chris_awd]

Hi
We are a UK Limited company with a dependent branch office in Germany. The branch office is part of the UK Ltd entity and doesn't qualify as a permanent Establishment under the dual taxation treaty.

UK Ltd:
GB-VAT registered
GB-EORI
XI-EORI

German Dependent Branch office:
DE-VAT registered
DE-EORI (pending issuance)

Our UK customers (mainly consumers, but also some VAT registered businesses) purchase goods from us and pay 20% UK VAT on their orders. Sales to UK exceed the VAT registration threshold.
We despatch from Germany and show on the commercial invoice that 20% UK VAT has been paid.

In this instance, because we are also collecting the UK VAT on the sale and declaring it, are we classed as the importer and should we be showing our GB-EORI as those of the "importer"? Does this change when a VAT registered business purchases from us?

And since there is no duty or VAT payable by the receiver of the goods on arrival (no duty because of the free trade area and EU preferential origin, and no VAT because it has already been paid), should we be using DAP or DDP incoterms?

Best wishes to all!
Chris

 

[2JP]

Are you using a freight forwarder? i.e. who will be filling out customs declarations?

 

[chris_awd]

Hi
Yes, we are using UPS.
On the German side, we declare the exports in the German ATLAS system.
On the UK import side, UPS are declaring the imports. We can encourage them to do this in a particular way if required with the accompanying documentation.

 

[2JP]

Here are a couple of better webinars talking about the subject and perhaps provide you with some leads to follow up on, but best talk to a specialist if you want a concrete answer:

My interpretation below (but it's worth little as I don't know what I don't know). Nobody else has jumped in but hopefully someone more competent comes along; I'm no expert. I know nothing about German requirements. It sounds like you are well prepared.

In this instance, because we are also collecting the UK VAT on the sale and declaring it, are we classed as the importer and should we be showing our GB-EORI as those of the "importer"?

Yes. The GB importer should have a GB EORI. Just as the EU exporter should have an EU EORI.

Does this change when a VAT registered business purchases from us?

Assuming you mean a GB VAT registered customer, no. As both you and the customer are GB VAT registered, you invoice the GB VAT to them, they pay the GB VAT to you. You both complete your GB VAT returns. If you are a GB Ltd company, any GB customer (regardless of whether they are GB VAT registered or not) would expect to pay GB VAT for purchases to a GB vendor so it should be no surprise.

And since there is no duty or VAT payable by the receiver of the goods on arrival (no duty because of the free trade area and EU preferential origin, and no VAT because it has already been paid), should we be using DAP or DDP incoterms?

If you are shipping from DE to GB and you are both EU exporter and GB importer on the declarations, and paying the import VAT, then DDP. Best to ensure that whoever is doing the freighting knows what you want and that you want to be named exporter and importer on the declarations. UPS may expect most shippers to DAP so just beware any automated web interface or software they provide that does not ask the right questions or allow you to put in all the info you think there should be. Ensure UPS are declaring you as the GB importer, not the customer.

Just my interpretation. I would like it confirmed.

 

[chris_awd]

Hi

Thanks, the videos were useful. They were dealing with the reverse situation, but there seems to be a relationship between who the importer is and the incoterms.
DDP - The exporter is also the importer
DAP - The receiver is the importer

All seems to be leading to the definition of "importer" as the party responsible for paying applicable import duty, excise, tax.

I'll investigate the Institute of Export Technical Helpline as a source of information too.

 

[2JP]

Incoterms are more to do with the relationship between seller and buyer, which then implies importer and exporter, really. The definition of importer, I believe, is the importer named on the import customs declaration. A carrier like UPS will be acting on your instruction but will be completing the import and export customs declarations partly on the exporter's behalf and partly on the importer's behalf unless the importer (or person arranging freight) specifies to them a different broker to handle import clearance. At least, I believe that is the usual thing. They should allow you to specify the delivery address as different from the named importer (importer = you, exporter = you, delivery = your customer, incoterms between you and your customer = DDP).

Again, though, this is only my interpretation. If you have an account manager at UPS, and you can get hold of them (!), check it all with them.

Re IOE tech helpline, I believe it's for members only.

Re incoterms, there is a nice chart at the bottom of this page (plenty more info on web):
https://activity.alibaba.com/ggs/incoterms.html

Earlier, you mentioned you were declaring exports. You want to check with UPS that they are also not doing the declaration! (Sorry, I do not know what the ATLAS system is.)