Declared value for CN22 and customs invoices, inclusive or exclusive of VAT?

Discussion in 'Ecommerce Forum' started by epicj, Jan 13, 2021.

  1. epicj

    epicj UKBF Contributor Free Member

    36 1
    Struggling to find the exact answer as to whether the declared value for goods should be the inclusive or exclusive of VAT when you prepare CN22, or for submissions of electronic invoice data.

    Normally the price will be ex-VAT, if you have refunded this, and use DAP or DDU delivery, this is easy.

    We plan to delivery under using DPP (duty pre paid) delivery, we keep the UK VAT then use this to pay the EU customers EU VAT, for smooth delivery.

    Problem is that if its price of inclusive VAT declared, you end up paying EU VAT on the UK VAT, and extra duties on the UK VAT, its knocks 5% off your margin.

    Just looking for guidance, or how others see this.
     
    Posted: Jan 13, 2021 By: epicj Member since: Oct 21, 2012
    #1
  2. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    275 35
    We were initially going to do something similar, but there is a variety of VAT rates across the EU. From 17 or 18 in Luxembourg and Malta up to 35 in Sweden and 27 in Hungary.

    instead we have removed the VAT and add a “fee” at checkout based on their own countries VAT rate, which is then taken at checkout.

    DDP is the way to go for sure, we have had many compliments and positive reactions to how easy it has been. In one example the landed price was exactly the same as it would have been in 2020. Just make sure you can cover the handling fee!
     
    Posted: Jan 13, 2021 By: JPMiddleton Member since: Aug 18, 2011
    #2
  3. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    275 35
    To answer your question (sorry) it is EX VAT- as no vat is charged.
     
    Posted: Jan 13, 2021 By: JPMiddleton Member since: Aug 18, 2011
    #3
  4. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Newcomer Free Member

    14 3
    That sounds like you've got it sussed :) Could I ask who you're using as the DDP courier? I've looked at the usual suspects, but drawing a blank. I can handle the check-out calculations, just need to find someone to implement the DDP part.
     
    Posted: Jan 13, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
    #4
  5. JPMiddleton

    JPMiddleton UKBF Regular Free Member

    275 35
    Posted: Jan 14, 2021 By: JPMiddleton Member since: Aug 18, 2011
    #5