Importing goods from EU from a supplier who is not VAT-registered

We import goods from the EU on a regular basis, but all our current EU suppliers are VAT registered and so are we. So invoices are 0% VAT, then import duty is either charged at the entry or postponed (depending on the shipment size and transport company). Now, we would like to import some goods from a smaller supplier, who is not VAT registered in their country. Is the whole process for us as the importer the same - we will be charged import VAT that we can then claim back, as goods will be sold to end-customer in the UK? Thanks

Hi,

Trader can either pay the import VAT at the time of importation and claim back through VAT returns or postpone import vat using PVA and then account for it on VAT returns.

More information on this can be found on the link below:

Check when you can account for import VAT on your VAT Return

Thank you.

 

Yes the import process is just the same whether your supplier is VAT registered in their country or not. Each countries VAT system is separate so when your EU VAT registered suppliers sell to you they zero rate as no VAT is charged in their country. If the supplier isn’t VAT registered then they will invoice without VAT being mentioned. Their EU VAT registration status is totally irrelevant to the UK authorities The import into the UK is an entirely separate transaction so import duty ( if applicable) and import VAT is charged on all imports . It does not matter whether the importer is VAT registered or not . You do however need to be UK VAT registered to use postponed VAT accounting. It is your choice whether to use this and shouldn’t be dependent on the transport company . https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad If you are UK VAT registered then you should be entitled to import VAT recovery provided you meet the normal criteria for VAT recovery. https://www.gov.uk/guidance/check-when-you-can-account-for-import-vat-on-your-vat-return