VAT when importing from Europe

[Dave Boatman]

I have recently started using a supplier based in the EU for one of our raw materials.
They have a shipper who deals with all the importing.
I am VAT registered and have an EORI number.
They send me an invoice for a customs clearance charge of £50.
This morning I was having a conversation with someone from another company who use the same supplier and same shipper for the same materials and found that they have to pay VAT on their shipments.
The only difference seems to be that they have been purchasing from before Brexit whereas I have only started this year.
Which one of us is doing it correctly?

 

[Mike Foulds]

There are a couple of reasons why you might correctly not be paying VAT, the 1st of which would be you are using Postponed VAT Accounting (PVA) for your imports, however, you should have confirmed this at time of import, and would have known, so believe this wouldn't be the case. You could also be importing goods which have a commercial value of under £160, but, as you're using it to manufacture other goods, again, believe this to be unlikely, as am guessing reasonable quantities would be involved. Apart from that, and some special circumstances, you should be paying VAT.

I think you need to check this with your supplier as unless one of the 2 above reasons I mentioned apply, or a special agreement with HMRC is in place.

Hope that helps.

 

[Dave Boatman]

There are a couple of reasons why you might correctly not be paying VAT, the 1st of which would be you are using Postponed VAT Accounting (PVA) for your imports, however, you should have confirmed this at time of import, and would have known, so believe this wouldn't be the case. You could also be importing goods which have a commercial value of under £160, but, as you're using it to manufacture other goods, again, believe this to be unlikely, as am guessing reasonable quantities would be involved. Apart from that, and some special circumstances, you should be paying VAT.

I think you need to check this with your supplier as unless one of the 2 above reasons I mentioned apply, or a special agreement with HMRC is in place.

Hope that helps.

Value is several 1000 euros per shipment.
I will check the forms I filled in to open the account with the shipper to check for the postponed vat

 

[GraemeL]

"same supplier and same shipper for the same materials and found that they have to pay VAT on their shipments.
The only difference seems to be that they have been purchasing from before Brexit whereas I have only started this year."

Is this company VAT registered?

 

[Dave Boatman]

"same supplier and same shipper for the same materials and found that they have to pay VAT on their shipments.
The only difference seems to be that they have been purchasing from before Brexit whereas I have only started this year."

Is this company VAT registered?

Yes we are both vat registered

 

[Dave Boatman]

Checked my account application with the shipper and I didn’t fill anything in for deferred vat.
Also checked my invoices from supplier and they do have a clause on each of them stating “Delivery Exemp of VAT According Art 39 1.1 of Belgian Law

 

[Red Wood]

Many forwarders/haulers & transport groups now clear goods using PVA as standard. Login to check the relevant PVA statements through the gov.uk website.