UK business shipping to EU customers

Discussion in 'International Business' started by Noob Business Girl, Apr 7, 2021.

  1. Noob Business Girl

    Noob Business Girl UKBF Contributor Free Member

    90 1
    Hi,

    I used to ship to EU but due to Brexit, I've stopped.

    What is the process now?

    If a EU customer orders online, will they have to pay extra before they receive their item?

    https://www.royalmail.com/brexit

    The recipient may then have to pay customs or VAT charges and a handling fee in the receiving country before they can claim the parcel. These charges will depend on the country they are sending to, the value of the item and whether it is a gift or commercial goods.

    How would I word this on my site to customers? Average order is £25 so it'd be annoying for them to pay extra on top of postage to EU.

    Thanks.
     
    Posted: Apr 7, 2021 By: Noob Business Girl Member since: Jun 15, 2020
    #1
  2. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Are you VAT registered?
     
    Posted: Apr 7, 2021 By: japancool Member since: Jul 11, 2013
    #2
  3. Noob Business Girl

    Noob Business Girl UKBF Contributor Free Member

    90 1
    No
     
    Posted: Apr 7, 2021 By: Noob Business Girl Member since: Jun 15, 2020
    #3
  4. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Then yes, your customers could be hit with additional customs charges, which would be their local rate of VAT plus a handling charge.

    Until June, the exemption for parcels under a certain value still exists, but I forget the value. It might be 22 euros.

    As for the procedure, you have additional customs forms to fill in, and you require an EORI number.
     
    Posted: Apr 7, 2021 By: japancool Member since: Jul 11, 2013
    #4
  5. Noob Business Girl

    Noob Business Girl UKBF Contributor Free Member

    90 1
    Thank you. That's not great for my customers. So if I registered for VAT, then they wouldn't have to pay additional customs charges? That means I'd have to pay more right?

    I've seen the additional customs form and I've got EORI number.
     
    Posted: Apr 7, 2021 By: Noob Business Girl Member since: Jun 15, 2020
    #5
  6. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    No, if you register for VAT, it means you don't charge VAT to your EU customers, and they pay less than your UK customers. But then they will have VAT to pay when the item reaches them.

    You can also send the item DDP, which means you pay the VAT on their behalf (which you can charge them for upfront). They still pay more, but at least they don't have to pay the handling charge, and they don't get an unexpected bill.

    As of June, the 22 euro exemption will be abolished.
     
    Posted: Apr 7, 2021 By: japancool Member since: Jul 11, 2013
    #6
  7. Mr D

    Mr D UKBF Legend Free Member

    28,146 3,467
    For low price items that get charged VAT - the handling charge can be a large chunk of the payment.
    Hence DDP if you choose to offer it can be worth it to the buyer.

    Or they can buy from someone in the EU without the hassle.
     
    Posted: Apr 7, 2021 By: Mr D Member since: Feb 12, 2017
    #7
  8. DontAsk

    DontAsk UKBF Ace Free Member

    1,941 313
    And you will probably take a hit on margins unless you increase your prices at the same time, negating some of the VAT savings for EU customers.
     
    Posted: Apr 7, 2021 By: DontAsk Member since: Jan 7, 2015
    #8
  9. DontAsk

    DontAsk UKBF Ace Free Member

    1,941 313
    What for? There's nowhere to enter it in the CN22 and CN23 from the post office.

    My EORI only ever gets used for imports.
     
    Posted: Apr 7, 2021 By: DontAsk Member since: Jan 7, 2015
    #9
  10. Mr D

    Mr D UKBF Legend Free Member

    28,146 3,467
    Yes, just a space for it on the cn22 from royal mail....
     
    Posted: Apr 7, 2021 By: Mr D Member since: Feb 12, 2017
    #10
  11. Trevor Andrews

    Trevor Andrews UKBF Regular Free Member

    111 31
    What’s DDP? We are in Spain and sometimes we get charged, others we don’t. As you say we have to pay Spanish VAT and one charge for a £150 order was €36.
     
    Posted: Apr 8, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #11
  12. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Delivery Duty Paid.
     
    Posted: Apr 8, 2021 By: japancool Member since: Jul 11, 2013
    #12
  13. DontAsk

    DontAsk UKBF Ace Free Member

    1,941 313
    Local PO ordered in brand new stock of CN22 - no space for an EORI anywhere.
     
    Posted: Apr 8, 2021 By: DontAsk Member since: Jan 7, 2015
    #13
  14. Trevor Andrews

    Trevor Andrews UKBF Regular Free Member

    111 31
    Thanks for explanation of DDP. However, if a UK company charges us VAT then we still have to pay Spanish VAT so not sure his customers would appreciate that either.
     
    Posted: Apr 8, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #14
  15. Mr D

    Mr D UKBF Legend Free Member

    28,146 3,467
    Yet still on the CN22 printed out from royal mail click and drop site.

    Perhaps local post office company should tell royal mail company they are doing things wrong?
     
    Posted: Apr 8, 2021 By: Mr D Member since: Feb 12, 2017
    #15