Importing when not VAT registered

[Billett]

Hi,

I'm carrying out a small import to the sum of £115 exc postage - I have my EORI for customs now setup. I'm not VAT registered as I'm under the threshold. I do not wish to collect the VAT at the point of sale as this means I will need to become VAT registered and I'm not at that stage where I wont to be.

Can I pay the VAT on the import when I pay my customs duty?

 

[japancool]

I do not wish to collect the VAT at the point of sale as this means I will need to become VAT registered and I'm not at that stage where I wont to be.

??

If you're the buyer, you don't collect VAT. That's for the seller to do.

Can I pay the VAT on the import when I pay my customs duty?

Yes.

 

[Billett]

??

If you're the buyer, you don't collect VAT. That's for the seller to do.

I am the seller and i'm buying direct fro China.

 

[wayzgoose]

Your buying from China, you pay the Customs and VAT. When you sell it you don't charge VAT.

 

[Billett]

Your buying from China, you pay the Customs and VAT. When you sell it you don't charge VAT.

Awesome thanks. Looking at the Gov website it talked about mandatory VAT registration which threw me.

 

[japancool]

I am the seller and i'm buying direct fro China.

As far as this consignment is concerned, you are buying it so you can sell it on, so you are the buyer, not the seller.

 

[Billett]

As far as this consignment is concerned, you are buying it so you can sell it on, so you are the buyer, not the seller.

Not sure why are are going over whether im the buyer or seller. Im buying to sell onto the consumer and not collecting VAT on the consumer sale.

The gov website talked about mandatory VAT registration as the order value is under £135 and therefore need to collect it at the sale. my understanding is now that I can pay this at the point of import so that I do not have to charge VAT to the consumer and register for VAT yet

 

[japancool]

Not sure why are are going over whether im the buyer or seller. Im buying to sell onto the consumer and not collecting VAT on the consumer sale.

Because if you don't know when you're a buyer or a seller, you're going to get in all sorts of trouble when it comes to working out what to do with taxes.

The gov website talked about mandatory VAT registration as the order value is under £135 and therefore need to collect it at the sale. my understanding is now that I can pay this at the point of import so that I do not have to charge VAT to the consumer and register for VAT yet

No no no no. VAT registration has nothing to do with this.

If you are VAT registered, you can claim back any VAT you paid, and then you MUST charge VAT.

If you are NOT VAT registered, you cannot claim VAT back and must not charge it.

Unless the SUPPLIER, the overseas merchant who you are buying from, is VAT registered in the UK and is collecting VAT, you will be charged VAT on import regardless of the value, and regardless of whether you are VAT registered or not.

The £135 threshold applies to those overseas suppliers who are registered for VAT in the UK. If they are VAT registered (or you are buying through a marketplace), and the order amount is under £135, then they will collect VAT at checkout. If it is over £135, then you pay VAT on import.

Being VAT registered would allow you to claim this back.

 

[Billett]

Because if you don't know when you're a buyer or a seller, you're going to get in all sorts of trouble when it comes to working out what to do with taxes.



No no no no. VAT registration has nothing to do with this.

If you are VAT registered, you can claim back any VAT you paid, and then you MUST charge VAT.

If you are NOT VAT registered, you cannot claim VAT back and must not charge it.

Unless the SUPPLIER, the overseas merchant who you are buying from, is VAT registered in the UK and is collecting VAT, you will be charged VAT on import regardless of the value, and regardless of whether you are VAT registered or not.

The £135 threshold applies to those overseas suppliers who are registered for VAT in the UK. If they are VAT registered (or you are buying through a marketplace), and the order amount is under £135, then they will collect VAT at checkout. If it is over £135, then you pay VAT on import.

Being VAT registered would allow you to claim this back.

Cool, understand a bit more now

 

[Paul Kelly ICHYB]

Can I pay the VAT on the import when I pay my customs duty?

Yes! Normally to the shipping company. You will also pay an admin fee as well.

 

[paulears]

With the under 135 thing all that happens is the VAT gets added to your bill, so on the hundred quid order, you actually pay them 120. There will be NO handling charge when ups or whoever deliver. Go to a 140 item and you pay them in China, 140. FedEx will charge you 28 quid, which they describe as government charge, not VAT, plus £12.50. The 28 quid is of course VAT, but no idea why they don’t put it in the VAT box! That’s how it works for small orders from China. I quite like the new system for those small orders, it’s cheaper!

For you, stop thinking about VAT altogether, just think it’s a tax you can’t do anything about. I get to claim that tax back, then have to add more when I sell it, so you’re better off than I would be.

 

[LPB 123]

FedEx will charge you 28 quid, which they describe as government charge, not VAT, plus £12.50. The 28 quid is of course VAT, but no idea why they don’t put it in the VAT box! That’s how it works for small orders from China.

If you get a Fedex online billing account (it's free) there's no extra admin fee, and you can download your invoices online as soon as they're processed. They also do state correctly that it's import VAT on the invoices, no mention of a government charge.

Any issues with the invoice you can dispute it from your online account, although I've never had to do this before.

 

[paulears]

Yes - I have one of those, but my fedex VAT requests don't marry up with the account - and I have never managed to see any of my deliveries appear there. Things I arrange myself do, but they're sent on other people's accounts. How do you get your incoming deliveries to show up there?

 

[LPB 123]

Yes - I have one of those, but my fedex VAT requests don't marry up with the account - and I have never managed to see any of my deliveries appear there. Things I arrange myself do, but they're sent on other people's accounts. How do you get your incoming deliveries to show up there?

It automatically links it up for us and has done since we opened it about 6 years ago. I'm not sure how it links it up whether it's by company name, VAT/EORI number or just address but they've never missed one for us since the account was active.

Maybe contact them if you get a lot of incoming Fedex deliveries.

 

[paulears]

They actually called me about switching my outgoing parcels - which at the moment go by Parcelforce, and I mentioned this - and how difficult it actually is to get the VAT invoice, and he kind of agreed? So at what point do they contact you to say VAT is due? Presumably pre-delivery attempt?

 

[LPB 123]

They actually called me about switching my outgoing parcels - which at the moment go by Parcelforce, and I mentioned this - and how difficult it actually is to get the VAT invoice, and he kind of agreed? So at what point do they contact you to say VAT is due? Presumably pre-delivery attempt?

Usually 1-2 working days after delivery has been made, I'll get an email saying you've been automatically billed etc. I log in to the account and download the PDF invoice.

 

[paulears]

I just wonder how on earth they match up an incoming parcel. I can see it working with the new euro systems, but does it even work on Chinese parcels - where the details are often very sketchy?

 

[LPB 123]

I just wonder how on earth they match up an incoming parcel. I can see it working with the new euro systems, but does it even work on Chinese parcels - where the details are often very sketchy?

It's got to be either company name, VAT/EORI or company address I presume. All of our parcels come from China too.

 

[paulears]

Ah - that could be it - never the same details twice with some of my suppliers. One arrived last week addressed to Uncle Paul and then my address which the UPS man though extremely funny!

 

[2JP]

It's a good job VAT is a consumer tax and not a business tax otherwise just think of the paperwork businesses would have to endure. (Sarcasm.)