Here is what you should know about how to export an item to the UK if you are a seller in the EU:

  1. How you should deal with Import VAT
  2. Different scenarios of exports to the UK
  3. What is requested when you export an item
  4. Webinar from the 10th February 2021

1. How you should deal with Import VAT

Import VAT should be collected by you or your shipper:

  • Shippers or sellers can collect the import VAT. 
  • If the shipper collects the import VAT, this means the shipper's customs agent would contact the buyer for the import VAT payment to release the item. This contact can lead to complications and deter the buyer from processing orders in this way, as they may not be expecting to pay any additional charges. 
  • When possible, please ship items using the incoterm DDP (delivery duties paid) this is when you would transfer the import VAT fee to the shipper on the buyer’s behalf.

You can include the Import VAT in the price of the item (20% for the UK) or at delivery.

  • When you collect import VAT, you need to ensure that it is included in the price of the item or in the delivery price on Vinterior (if you did not charge VAT on the item).

Communicate extensively with the buyer: 

  • Vinterior shows a disclaimer on each listing to tell buyers whether import VAT is applicable. 
  • Your responsibility is to ensure that the buyer is aware of whether you or your shipper is collecting the import VAT. 
  • When the shipper collects import VAT, please do not dispatch the item until the buyer understands that they will be contacted by a customs agent and how much import VAT they would have to pay.

Communicate with your shipper:

  • Verify with your shipper that they can do exportation and clarify who is collecting VAT.
  • Please ensure that the customs declaration specifies if the import VAT has already been collected if you are collecting the import VAT (i.e shipping an item using the incoterm DDP). List of shippers who are exporting at the moment

2. Different scenarios of exports to the UK

The different scenarios depend on 2 main elements:

  1. Was the sale above or below £135? The £135 rule applies to the consignment. This means the price of all the items you sell to a specific buyer in a specific order has to be below £135. For more information, please refer to this article: Article about the UK supply VAT
  2. Is the buyer a VAT-registered business or a consumer? Not to be confused with trade buyers: trade buyers can be VAT registered or not.

3. What is required when exporting an item

  • Complete VAT registration in the UK
  • Onboard with a customs broker for customs declaration / or speak to your shipper as they may be able to do this for you
  • Register for EU and UK EORI number
  • Obtain 8-digit commodity codes (HS)

Details of what you need for an export customs invoice:

  • The receiver’s & sender’s address
  • The description of the item and item value 
  • The purpose of the sale: whether this is a private or commercial shipment
  • Your EORI number
  • Commercial invoice, which the driver can show at the border. This should be printed and shared with your shipper
  • Explicit who collected the import VAT (shipper or seller)
  • Customs Declaration (MRN number)

Webinar for EU sellers: 10th February 2021

0:01 - 03:20: Introduction & panel presentation

03:20 - 19:33: General presentation of Brexit changes

  • 04:06 - 05:25: What changed with Brexit
  • 05:26 - 07:19: How UK consumers lived the changes
  • 07:20 - 10:25: Taxes
  • 10:26 - 12:12: Shipments
  • 12:13 - 17:23: Solution
  • 17:23 - 19:33: Steps as sellers & pricing questions

19:33 -54:20: Q&A

  • 20:16 - 21:38: How will this benefit me as a seller?
  • 21:38 - 22:38: Which shippers are offering DDP?
  • 22:38 - 25:55: I want to stay competitive in the UK market
  • 25:55- 27:22: Will delivery costs impact my sales?
  • 27:22 - 28:22: Will the buyer have to pay more?
  • 28:22 - 29:20: I am on the margin scheme, what should I do?
  • 29:20 - 31: 20: As a seller do I need to take these steps?
  • 31:20 - 54:20: Answer the chat