In this article, we are sharing answers to FAQs in efforts to improve clarity and understanding on Brexit and the next steps for EU sellers to get ready to sell to the UK market.
Below you can find information on the following:
- Import VAT
- How will customs know that the Import VAT has already been collected?
- Are items subject to reduced Import VAT rates?
- Vinterior payment receipts
- Cites Documentation
- Seller VAT status
- I am on the margin scheme, what should I do?
- Do I need to register for UK VAT?
- Shippers offering DDP
- Next steps
- How will taking these steps benefit you as a seller?
- Do you need to take these steps?
How will customs know that the import VAT has already been collected?
As import VAT is being collected at checkout from the buyer, you need to make sure to choose Duties Deliveries Paid (DDP) Incoterm when shipping. This means import VAT can be transferred to the shipper with the cost of delivery, for the shipper to make import VAT payment at customs.
The Deliveries Duties Paid will generally be visible on the commercial invoice for shipping as an indication of how the import VAT will be paid.
Works of art and antiques are subject to reduced Import VAT rates of 5% provided that you as the seller can share the necessary documents with the shipper to show at customs to prove this. Make sure you have all documentation ready by liaising with your shipper and reaching out to your local tax authorities and/ or local antique association if necessary.
If you are in doubt, opt for the normal rate of 20% import VAT.
Vinterior Payment Receipts
As a third-party platform, we provide a service in facilitating sales for our sellers. Therefore your receipt will show the amount paid to Vinterior in commission and the amount you made from the sale. This will not include a price breakdown of the item to include import VAT.
When creating your commercial invoice for shipment, you will generally be asked to provide three prices:
- Item value**
- Import vat if applicable
- Delivery fee
**The item value should not include the import VAT if you include it in your Vinterior pricing.
Please be aware that Rosewood items now require CITES certifications when exporting to the UK, which can take up to 6 weeks to get. If you do sell an item subject to CITES, please add information regarding the delivery timeline in the item description and liaise with the buyers to manage their expectations.
Seller VAT status
I am on the Margin Scheme, what should I do?
On the margin scheme, you are likely to include a percentage of VAT in your prices. Now post-Brexit the margin scheme does not apply when exporting to the UK. By working out the VAT excluded price of your items, you can then add the UK import VAT of 20%. More detailed pricing guidelines here.
It is not a requirement for you to be UK VAT registered to export to the UK.
We understand that shippers are still adapting to changes and not all are offering Deliveries Duties Paid services at the moment. We are continuously in communications with shippers and will share any updates with our seller community, please also reach out to shippers in your local area to find out if they are offering DDP.
Find a list of shippers offering DDP here.
Taking the necessary steps will:
Give you continued access to the large UK market
Make you more attractive to UK buyers and increase your listing conversion rate
Promote your long term sales growth
Reduce problems to you as the exporter associated with unpaid customs fees
Yes! Make sure you are ready to sell to UK buyers. As a business, you should be looking to take these steps now so you are ready before 31st March 2021. We will be working with sellers to answer questions and support you but please note we are working towards a full switch over.