B2B sale from Brazil Company to UK Company — VAT and Duty

I am importing from Brazil to UK. This is business to business. Am I right in thinking, with with DAP (Duty at Place) and B2B: 1. The importing UK company will pay duty (on COG+shipping+insurance etc) if the cost-of-goods (COG) is over £135? 2. The importing UK company will pay VAT on duty+COG+shipping+insurance etc; even if the COG is under or equal to £135? But for B2C, if the COG is under or equal to £135, the exporting company should be registered for UK VAT, and charge UK VAT at the point of sale? Many thanks for your help in advance, I have read so much conflicting advice!

1. If goods are over £135 normal import procedures apply. Duty is charged on costs of goods plus shipping and insurance up to the point of introduction into the UK. If you ship DAP then the freight and possibly insurance will be included in the DAP price. There is therefore nothing to add on. Import VAT is also due on the duty inclusive price. 2. Goods below £135 are relieved from import duty but VAT is applicable. In a B2 B sale this will either be at point of import or if you provide the seller with your VAT number you will account for VAT by reverse charge through your VAT return. 3. Yes for B2C if the sale is direct and not through a platform then the seller should be registered for UK VAT and charge supply VAT at point of sale .

Hi,

The person or organisation who made the customs declaration for the imported goods is the debtor. This means that they are liable for the customs debt. If you are the declarant but use an agent or representative to make a customs declaration on your behalf, they may be liable depending on the type of representation. Delivered Duty Paid (DDP) and Duty at Place (DAP) are the incoterms agreed between importers/exporters and their agents. You may find below information useful:

Paying VAT on imports from outside the UK to Great Britain and from outside the EU to Northern Ireland

For more help, please contact our imports and exports team for advice:

Imports and exports: general enquiries

Thank you.