Importing from EU (small invoice amount)

Hello, Could you please help me to understand how will be better to import small parcels from EU to the UK. Total invoice amount - 145 GBP. As far as I understand such a parcel can be bought and imported in two ways: 1. Purchase with EU VAT and import in the UK (174 GBP, VAT incl.) 2. Buying without VAT and importing into the UK (145 GBP, without VAT) Does it make any difference whether the importer is a person or a company? And which way will have fewer customs fees (import VAT payment)? Thank you.

Hi I think you may be referring to the available import procedures for goods with a value below £135 purchased from an EU retailer. If so the EU retailer may charge UK VAT on the goods. The goods are then imported in a simplified way with import duty relief being allowed and the UK VAT already accounted for. No additional charges will be added at import.You should not be charged EU VAT as the goods are for export. https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk Alternatively if the goods are sold to a UK business who is VAT registered then UK supply VAT is not charged.but should be self accounted for by the business in their VAT return. If the goods are above £135 in value then import duties( if applicable depending on the product) and import VAT will be due at import. Therefore in your example of goods of £145 value there are no simplifications for VAT so import duty and import VAT will be due at the time of import. If a business is VAT registered then they can use the postponed import VAT scheme to self account for the import VAT in their VAT return. In all cases if you are charged EU VAT on the purchase that is something you need to take up with the supplier. Payment of EU VAT has no bearing on whether UK VAT is due or charged. There are no UK import VAT exemptions except for gift’s below £39 between two private individuals.

 

Hi, I would advise contacting the Customs and International trade helpline on 0300 322 9434 and reiew the guidance : Tax and customs for goods sent from abroad      . Thank you.