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

Digital Services to European Customers from outside EU

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