UK VAT Registration for Importing Goods into UK outside EU
When importing goods and stocking the goods with a view of selling to UK Customers, UK VAT registration is mandatory under Non Established Taxable Persons (NETP). The threshold is nil and require obtaining a VAT and EORI Number to import into the UK and claim back the VAT. If you are selling to consumers directly from overseas then the distance selling threshold is £70,000 before you are required to register for VAT.
Process after VAT Registration
- When goods imported to UK from Outside EU HMRC will charge import VAT and custom duties and VAT payment is required before goods are allowed into the country
- If this is the case then required to provide the EORI number upon import. This should be given to the freight company so they can enter this on the documentation.
- HMRC will issue a C79 certificate which provides all the VAT that has been paid to them
- The C79 can be use to complete the VAT Return to claim back the VAT paid. You will also need to account for the VAT charged to customers.
- To prevent loss of profit then you need to add 20% to your selling price (including delivery charges)
For example if you are selling price + postage is £100 then you need to charge £20 to maintain current profit levels
However, if you charge your customer £100 and then you will take a 17% hit on your margins:
Price will be £83 + 17 VAT= £100
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