Import paperwork for low-value items?

[Alexio]

We want to import some sample parts from China before ordering a large quantity. The samples are low value and are exempt from UK Customs Duty by both their value and commodity code. UK VAT will be payable. We have an EORI (and are VAT registered). In this case shipping will be non-freight via DHL.

Do we need to use a C88 if the goods are under £135 in value? Is the C88 only for freight shipments?

How does the VAT reclaim work? HMRC say we need a C79 but also that they will send us a C79 every month. So do we just need an invoice from the supplier? Do we also need a delivery note?

If the VAT reclaim for imported goods is done via C79, does that mean that imported goods do not affect the total value of purchases figure on the VAT return?

 

[Import Expert]

Hi Alexio,

DHL will arrange the customs clearance so no need to worry if it will be a C88 or not. They will simply need your EORI number, the commercial invoice, and may ask for the customs tariff (commodity) code, although often the latter two are provided by the supplier when they book the courier.

HMRC will normally post you a C79 the following month which you can then use to reclaim any import VAT paid.

Kind regards,
Darren.

 

[CHUKTC]

Your shipper in this case DHL should deal with the C88 for you if required. Re VAT you will pay the VAT on import, HMRC will send you a C79 - usually at the end of the month and you reclaim it under purchases in your VAT return - put the value of goods (including shipping) and the value of VAT reclaimed. Keep the C79 as this is the proof of the VAT you paid and you will need to show if VAT inspectors come to visit.
Looking to the future if you use a good shipping agent they will handle the C88 for you.
Hope this helps.

 

[Alexio]

Thank you both. So the C79 is used like a VAT invoice, and the C79 reclaim is done on the quarterly VAT return? What if the VAT return is due before the C79 arrives?

 

[CHUKTC]

Personally I put it in my return in the quarter the transaction occurred even if the C79 has not arrived yet. When the C79 finally arrives I keep it on file in case of an inspection.

 

[Ray272]

I've never gone by the C79 I'm not 100% it is as accurate as it needs to be. Just retain them for inspections as mentioned.

Had 1 inspection. Showed images of all documents via email.

Was worrying but after that inspection I note we always get paid out very quickly now by hmrc.