UK company selling b2b to a Republic of Ireland company - VAT and Tariff situation?

[jxm28788]

We have a potential order (>£135) from a (VAT registered) company in ROI so have a few questions around VAT and Tariffs. Some of the goods are manufactured in the EU, some in china.

I've been looking around for information and from what I've read so far it seems:

1. We would charge them VAT at 0% on the order
2. The Chinese manufactured goods may attract tariffs
3. If we use FedEx/UPS/DHL etc, they would handle the tariff side of things and charge the end customer

Is my understanding correct?

 

[Customs Geek]

Hi

The EU has a €150 duty free exemption not £135 so you have to consider the exchange rates customs use. VAT is still applicable.

1. Yes If you are exporting outside the UK you would zero rate the UK VAT.
2. The rate of duty applicable will depend on the type of goods. EU goods will still be charged duty unless you can provide evidence of the previous export from the EU and they are treated as returned goods. EU goods cannot be re enter the EU under the trade agreement duty free.
3. Yes the courier companies will handle the export from the uk and import into ROI. Who pays is up to you and your customer, although it’s best and cheaper all round if the customer pays. If they are VAT registered in ROI then they may have access to VAT and duty deferral . You would need to ask/ agree with your customer.

 

[Shipping Guru]

We have a potential order (>£135) from a (VAT registered) company in ROI so have a few questions around VAT and Tariffs. Some of the goods are manufactured in the EU, some in china.

I've been looking around for information and from what I've read so far it seems:

1. We would charge them VAT at 0% on the order
2. The Chinese manufactured goods may attract tariffs
3. If we use FedEx/UPS/DHL etc, they would handle the tariff side of things and charge the end customer

Is my understanding correct?

Hi there. for note number 3, please be aware that the tariff selection is down to you. DHL, UPS etc will not select the tariff for you. If you need support for export compliance, we have a service for that.

 

[jxm28788]

Hi there. for note number 3, please be aware that the tariff selection is down to you. DHL, UPS etc will not select the tariff for you. If you need support for export compliance, we have a service for that.

I have all of the tariff / commodity codes if that's what you mean?

 

[scstock]

EU goods will still be charged duty unless you can provide evidence of the previous export from the EU and they are treated as returned goods.

My understanding of the post-Brexit trade agreement between the UK & EU is that goods which are at least 40% of EU or UK origin attract no Import Duty - is that not correct?

 

[Customs Geek]

My understanding of the post-Brexit trade agreement between the UK & EU is that goods which are at least 40% of EU or UK origin attract no Import Duty - is that not correct?

No unfortunately not. Only goods deemed to be UK preferential origin are entitled to duty free entry to the EU and only EU origin goods are given duty free entry to the UK .
Whether it was intentional or not the legislation does not permit EU goods duty free entry back into the EU or UK goods duty free entry to the UK without proof of prior export and a claim to returned goods relief.
There are also different rules on what qualifies as preferential origin depending on the type of goods. You have to check the rules for the goods HS heading, there’s a very long annex to the agreement . Some rules are added value some are specific manufacturing processes. There isn’t just a set percentage of additional value.

 

[jxm28788]

ok, thanks for all the help.

 

[Shipping Guru]

I have all of the tariff / commodity codes if that's what you mean?

yes that is correct