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Posted Tue, 09 Nov 2021 10:53:33 GMT by Petar Savov
We ship on DDP excluding VAT basis form our UK warehouse to our customers in Europe, we obviously clear and pay for the transport and the duty charges on import in Europe but it has been flagged to us ( by our EU customs agent) that we should include these charges in the selling price, so for example if the selling price is £100 we should add to this price the EU duty and the freight so eventually the selling price would be £150 ( where £30 is for freight and £20 is duty for example) but what if we do not want to pass this cost to our customer , are we obligated to incorporate duty and transport charges in the selling price?
Posted Wed, 10 Nov 2021 11:05:26 GMT by HMRC Admin 17

Hi,
 
It's a commercial decision as to what you charge your customer .

However you need to declare the correct selling price when it is presented to EU customs so that the correct level of vat and duty is charged,
the cost is the value of the goods plus the insurance and freight costs.

I would recommend speaking to your freight agent about the values declared on the customs documents when arriving in the EU.

Thank you.

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