Importers in the UK may defer the payment of customs duties and import VAT. To use this system, the importer must apply for a Duty Deferment Account.
The following are required:
• A UK-issued EORI number as an intra-Community operator
• Establishment in the UK
• Importing goods from the EU
All invoices must include these details.
The UK buyer records the transaction in their commercial records and provides their EORI number as proof that the goods are subject to a simplified customs procedure.
The Simplified Procedure and EORI number must be communicated to the supplier, as well as the VAT number, which must be included on the supplier’s invoice.
Value thresholds:
• 0,01-15£
-> No customs duties
-> No import VAT
• Desde 15,01-135£
-> No customs duties
-> Import VAT is due
-> The £135 limit applies to the total shipment value (intrinsic value = selling price of the goods)
• Más de 135,01 £
-> Customs duties are due
-> Import VAT is due
Sales not exceeding £135 are subject to new rules. Sellers shipping goods to UK residents at or below this threshold are responsible for collecting and paying UK VAT.
When the buyer is VAT-registered in the UK, they must provide their VAT registration number to the seller, who must then account for the VAT through a reverse charge mechanism.
• Subject to VAT at the point of sale
• Exempt from customs duties
• ONLINE MARKETPLACES (OMP):
EU businesses selling online in the UK must register with HMRC and report VAT. They act as tax collectors and must include VAT in the sale price for later remittance.
• Subject to both VAT and customs duties
• Customs value = selling price of the goods (total shipment), excluding:
-> Transport and insurance costs (unless included in the price and not itemized separately)
->Any other identifiable taxes and charges, as per customs documents
When the UK VAT-registered business provides their VAT number to the EU direct seller, the VAT responsibility shifts to the UK buyer via reverse charge.
The invoice should include a note:
“Reverse charge: customer to account for VAT to HMRC”
This exempts the EU seller from VAT liability in the UK.
• Exempt up to £39
o register for VAT in the UK, go to HMRC:
https://www.gov.uk/guidance/register-for-vat
The UK Global Tariff (UKGT) came into effect on 1 January 2021, replacing EU customs tariffs.
Check tariffs here
If goods are processed in or originate from the EU, this must be stated on the invoice.
Goods originating from third countries but shipped from the EU are not eligible for the tariff exemptions or reductions agreed between the UK and the EU.
