Importing from Germany and VAT

[-markie]

Hello,

I was wondering if someone could offer me some guidance.

I recently started out a small business and buying from the UK, as i've grown i've managed to get enough money to buy direct from the distributor in Germany (it's for home decoration items).

I'm now VAT registered (as of a month ago) and have a EORI number which the distributors required for my account set up. So i placed my first order 1 week ago and today it arrived, the invoice was for £8,240 and the invoice shows no VAT and states 'export except from Germany VAT, 4 No, 1 German VAT law'.

I'm trying to figure out if i need to pay VAT on this now it's reached the UK. As the import was all done for me (I ordered and it literally just arrived on a lorry a week later - i've not had to pay any custom charges etc). I'm not sure if this is going to be linked to my EORI number and added to my 'Postponed import VAT' statement on the GOV website? Or if i even need to pay VAT on this at all?

Any guidance would be really appreciated.

Thank you!

 

[Mr D]

Yes you will pay VAT.
Just you haven't had the bill yet.
So VAT and whatever customs charges that UK has for the item. Could be zero customs, could be considerable amount.
Plus 20% VAT on the entire value including shipping of course.

 

[-markie]

Yes you will pay VAT.
Just you haven't had the bill yet.
So VAT and whatever customs charges that UK has for the item. Could be zero customs, could be considerable amount.
Plus 20% VAT on the entire value including shipping of course.

Thank you.

So how is the bill usually delivered to me?

 

[Mr D]

Thank you.

So how is the bill usually delivered to me?

Phone call.
By letter posted through the mail
By email

Take your pick. Have had each of them over the years.

 

[-markie]

Phone call.
By letter posted through the mail
By email

Take your pick. Have had each of them over the years.

Thank you.

So is all of this from the company that handled the import I assume?

 

[Mr D]

Thank you.

So is all of this from the company that handled the import I assume?

Multiple companies.

Generally each one used one method at a time.
I don't think I've had both email and letter for the same transaction.

 

[-markie]

Multiple companies.

Generally each one used one method at a time.
I don't think I've had both email and letter for the same transaction.

So with regards to vat how would hmrc usually send me this? Letter, postponement of vat on the gov website etc?

 

[japancool]

So with regards to vat how would hmrc usually send me this? Letter, postponement of vat on the gov website etc?

https://www.gov.uk/guidance/get-your-postponed-import-vat-statement

 

[Richard Clarke]

Evening Markle....
Have you received any further correspondence from anyone on this. My guess would be that if your shipment is not on the PVA system (CDS) then your import is more than likely still to be done.

 

[-markie]

Evening Markle....
Have you received any further correspondence from anyone on this. My guess would be that if your shipment is not on the PVA system (CDS) then your import is more than likely still to be done.

thank you.

I spoke with the importer (the shipment actually went through 3 different companies which made it difficult to track down who I needed to speak to). But I’ve eventually spoke with the company that dealt with the import this side, they said as I provided my eoir number to the manufacturer that this will eventually show on my ‘postponement of import tax” account on the gov website, I’ve been checking every day but it’s not showing yet (it’s only been about 2 weeks since the import). He said hmrc can be a bit slow as it was low value owed (about £1500). I’m assuming it’ll next month when it’s generated?

 

[Richard Clarke]

Yes if declared only two weeks ago then it will show on your CDS PVA next month. You also need a copy of the customs declaration as HMRC can/will audit companies (upto 7 years) and the documents you need to request from the agent is C88 and E2 ..

 

[-markie]

Yes if declared only two weeks ago then it will show on your CDS PVA next month. You also need a copy of the customs declaration as HMRC can/will audit companies (upto 7 years) and the documents you need to request from the agent is C88 and E2 ..

Brilliant thank you