Sending Palletised Goods from GB to EU Post Brexit

Discussion in 'International Business' started by MurphyM22, Feb 22, 2021 at 6:57 PM.

  1. MurphyM22

    MurphyM22 UKBF Newcomer Free Member

    3 0
    Can anyone advise how to get new furniture items delivered to private residential customers in ROI and EU. We normally used groupage but regular pallet couriers have said importer (customer) will need an EORI No, (which they won't have) and this is B2C sales rather than B2B.
    Trying to get some pallets to Dublin from GB currently. If we do DAP, the pallet couriers ask for customers EORI or NI number. I am not familiar with DDP so any knowledge, advice or experience of this since 1st Jan greatly appreciated as its doing my head in now!
     
    Posted: Feb 22, 2021 at 6:57 PM By: MurphyM22 Member since: Jan 23, 2021
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  2. Mike Godwin

    Mike Godwin UKBF Regular Free Member

    141 32
    The main concern of the EU member state is who will pay the local VAT or equivalent on delivery. This is why an EORI is being asked for. So most UK exporters have applied for their own EU EORI and in some cases set up warehouse agreements to hold stock within the EU.
    • Arrange for your freight forwarder to manage the importation into the EU of shipments for EU consumers and pay the import VAT (and possibly customs duty if value is greater than e150) on the customers behalf. The UK seller reimburses the freight agent immediately for the payment. Check with your freight forwarder if you need an EU EORI number. The EU import VAT is not recoverable as input tax.
    • Leave the consumer to account for import VAT and possibly customs duty by them liaising with their local Customs/tax authority. This is probably the least viable commercial option, as it delays the delivery of the goods to the consumer and places an administrative burden upon the consumer also.
    • Register for VAT in the member state of the consumer and obtain an EU EORI number to import into the EU and charge domestic VAT to the consumer. This option will allows the UK seller to hold stock within the EU for the fulfilment of orders throughout the EU. The other benefit of holding stock in one EU member state, is that goods can be dispatched to private consumers in all other EU member states, using the distance selling thresholds (until the end of June).
    Hope this helps in some way....
     
    Posted: Feb 23, 2021 at 1:24 PM By: Mike Godwin Member since: Mar 27, 2018
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  3. MurphyM22

    MurphyM22 UKBF Newcomer Free Member

    3 0
    Thank you Mike for this info, if we were to use Option 1 do we invoice our ROI customer ex-GB VAT or inclusive??

     
    Posted: Feb 23, 2021 at 1:55 PM By: MurphyM22 Member since: Jan 23, 2021
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  4. Mike Godwin

    Mike Godwin UKBF Regular Free Member

    141 32
    UK VAT should not be charged on orders from the UK sent to Ireland/EU. However Irish VAT will be due on orders over €22 . The ROI consumer will likely also have to give a POA (Power of Attorney) to a customs broker to pay Irish VAT on their behalf.

    You'll be aware by now that the whole Brexit fiasco is causing huge issues throughout the supply chain and in particular to freight forwarders and logistics suppliers nationwide who are bearing the brunt of this governments failure to address the detail of the Brexit deal. The situation remains challenging and we will get to grips with it, given time. In the meantime, we are trying to help where we can and appreciate your patience and understanding. Thanks.
     
    Posted: Feb 23, 2021 at 2:45 PM By: Mike Godwin Member since: Mar 27, 2018
    #4