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Posted Tue, 28 Sep 2021 09:25:17 GMT by Petar Savov
We have a sister company in the Netherlands , we move goods from our customs warehouse in the UK to the Netherlands. The invoice for the movement is an intercompany invoice with the UK company as the seller and NL company as the buyer, however there isn't an actual payment as it is an internal transfer. Can we still use valuation method 1 for the EU import clearance, the value used for the clearance is not affected by the relation between 'buyer' and ' seller' as there isn't an actual transaction/payment.
Posted Mon, 11 Oct 2021 14:15:41 GMT by HMRC Admin 19
Hi,

Customs valuation for EU imports is governed by EU legislation and guidance; the latter is available via the ‘Europa’ webpages.

Both the UK and the EU follow World Trade Organisation (WTO) rules on customs valuation.

UK rules can be found via this link:

Notice 252: valuation of imported goods for customs purposes, VAT and trade statistics

They are similar if not identical to EU rules.

This includes ‘free of charge goods’ in section 10.

Thank you.
 
Posted Thu, 21 Oct 2021 15:52:52 GMT by Petar Savov
Hi, Thanks for the reply, and where do we get the identical value for our products from? Notice 252 says that we could use method 2 and produce a customs entry for identical goods imported by a wholesaler which entry has been accepted by customs under Method 1. Doers this mean that we have to get another importer's entry , where method 1 has been used and accepted by customs and use the same value for our imports under method 2?
Posted Thu, 04 Nov 2021 14:17:50 GMT by HMRC Admin 20
Hi Petar Savov

You are not obliged to obtain another importers import declaration.

However, HMRC would consider any reasonable commercial evidence of a market price. 

Thank you.
 
Posted Mon, 22 Nov 2021 07:07:38 GMT by Jessica Wade
The simplest approach to report transactions to the GL and ensure you're appropriately balanced between subs is to use intercompany journal entries. You must apply the I/C method you just outlined if you have a legislative need for I/C transactions, such as arms length requirements for foreign subs, advanced tax obligations, or inventory transfers. You might be able to do away with the sales order/purchase order section and just submit I/C invoices and vendor bills instead.

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