Unsure of what overseas supplier is suggesting ref VAT, Is this legit?

Discussion in 'International Business' started by Karl Kacobs, Mar 21, 2021.

  1. Karl Kacobs

    Karl Kacobs UKBF Newcomer Free Member

    2 0
    I'm a self employed VAT registered work from home seller of tat on ebay and etsy. I regularly buy goods from Alibaba listed suppliers and the process is that after payment the goods are sent via air-freight. I pay the supplier for the goods and I later get and invoice from the courier(TNT, DHL etc) for the tax and duty around about the time the goods arrive. I end up with the goods, an invoice for said goods and invoice for duty and VAT which matches my accounts and bank statements, everyone sleeps well :)

    I'm now in the process of negotiating with a new supplier and they are suggesting things different from what I'm used to and alarm bells are ringing but I'm unsure if it's my lack of understanding or they are just dodgy.

    This new supplier is saying that I pay their business in Thailand and they will ship the goods to me, great! Now they told me that they send a couple of pallets to the UK every week which I believe as there are plenty selling their products. I asked if they consolidate shipping and they said they did and the pallets get split out in the UK and goods forwarded to UK customers great.

    I asked them what the situation is with Duty & VAT as usually I pay to the courier but in this case they are saying that they cover all of these cost, I pay one final fee. I asked if they had a UK VAT number they don't so I asked how do I prove that my goods have had duty & VAT paid should I get an inspection?

    This is when it all got murky.

    Is this kind of transaction legit? Am I worrying over nothing? What should I be asking?

    Thanks in advance if anyone can illuminate me here.
     
    Posted: Mar 21, 2021 By: Karl Kacobs Member since: Mar 21, 2021
    #1
  2. japancool

    japancool UKBF Big Shot Free Member

    4,374 900
    Presumably there must be an agent in the UK that does the splitting out and forwarding?
     
    Posted: Mar 21, 2021 By: japancool Member since: Jul 11, 2013
    #2
  3. Karl Kacobs

    Karl Kacobs UKBF Newcomer Free Member

    2 0
    This is what I thought, so I asked if I was buying from their UK agent or the factory in Thailand. . They said payment would be to Thailand.
     
    Last edited: Mar 21, 2021
    Posted: Mar 21, 2021 By: Karl Kacobs Member since: Mar 21, 2021
    #3