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Posted Fri, 27 Nov 2020 15:21:20 GMT by RickF
Hello. Can our EU supplier for the shipments to the UK use the Incoterms "DDP excluding VAT Bradford (UK)"? We have GB VAT number and GB EORI number but we do not want to pay the import duty and our EU supplier is willing to pay the import duty but not the import VAT as we should be able to put it into our VAT return. Our supplier says this is a normal process in other countries outside the EU but we have never done it before. Thank you
Posted Wed, 02 Dec 2020 10:13:26 GMT by HMRC Admin 5
Hello Rick.
 
No, this is not possible.
If the supplier is shipping DDP then they are responsible for clearing the goods through customs  and paying both the import duty and VAT.

Thank You.
Posted Thu, 29 Apr 2021 13:56:42 GMT by Marzena
I am a seller from the EU. My UK client does not want to deal with customs formalities. So we want to sell on a DDP basis. 1. If I am going to pay the customs duty and import VAT at the border as a seller (my client does not want to do it, so he wants to use the DDP system), Can I reclaim this import VAT on my VAT Return? Or Is it impossible because I am a reseller, and we can only get a VAT reclaim on purchases? 2. If I pay this import VAT at the border, does the customer have to pay any VAT on sales or does he pay the invoice in the net amount, excluding VAT?
Posted Wed, 05 May 2021 14:14:58 GMT by HMRC Admin 19
Hi,

Import VAT can be reclaimed as input tax subject to normal rules. You can usually reclaim the VAT paid on goods and services purchased for use in your business. If a purchase is also for personal or private use, you can only reclaim the business proportion of the VAT.

Please refer to sections 10 to 13 of VAT Notice 700 ‘VAT guide’ for further information’:
VAT guide (VAT Notice 700)

Please also refer to Revenue and Customs Brief 15 (2020) ‘VAT – Conclusion of review of Import VAT deducted as input tax by non-owners’ for guidance on the correct treatment of import VAT paid by a taxable person who is not the owner of the relevant goods:
Revenue and Customs Brief 15 (2020): VAT – Conclusion of review of Import VAT deducted as input tax by non-owners

If the goods are located in the UK when supplied to your customer then you may need to register and account for VAT on the sale. Please refer to VAT Notice 700/1 ‘Who should register for VAT’ for further information:
Who should register for VAT (VAT Notice 700/1)

In particular, section 9 covers non-established taxable persons (NETP), which is any person who is not normally resident in the UK, does not have a UK establishment and, in the case of a company, is not incorporated in the UK. Paragraph 9.3 states that if you are an NETP and make any taxable supplies in the UK, you must register for VAT in the UK and account for UK VAT to HMRC.

Thank you.
 
Posted Mon, 10 May 2021 17:27:49 GMT by Lina Vigier
Hello, I'm confused. I am a seller in France/EU selling to UK customers with a VAT and EORI number. We also have VAT and EORI number. We use the Incoterm DDP. I have just found out from Customs that we can use DDP without VAT. It is on the Incoterms 2020. So our customers can claim the VAT and file their own returns. We do not claim VAT on our invoices. The big mystery and problem is that express parcel companies are not keying in DDP. They key in whatever they want and so we do not know what our UK customer is doing after or upon receipt of their import. If we can state DDP without VAT it would be a relief for both sides. Thank you.
Posted Tue, 18 May 2021 12:10:11 GMT by HMRC Admin 18
Hi,

My apologies but I am unsure what your question is, could you please clarify this? 

Thank you.
 
Posted Tue, 01 Jun 2021 15:40:24 GMT by merve cbn
Hi I am buying products on Alibaba . Seller offered DDP terms and door to door service . Does is it mean , I don't need to pay any additional taxes? I am quite confused, I dont want to do something wrong then get fine . I have an company with EORI number . Do i need to pay any other additional taxes for receiving this products ? when I receive them ,can i just start selling ? Thanks
Posted Wed, 02 Jun 2021 13:22:43 GMT by HMRC Admin 8
 Hello,
Under the Delivery Duty Paid system (DDP) the seller is responsible for arranging and paying for transportation to the final destination of the goods.
The seller is also responsible for paying any tariffs and taxes when importing the goods into the buyer’s country.
Risk transfers at the moment of unloading, for which the Buyer is responsible:
Incoterms Explained: Delivery Duty Paid (DDP)
Thankyou
Posted Tue, 13 Jul 2021 08:44:19 GMT by mikobg
Hello, Please can you clarify how can I claim back the VAT which have been invoiced from the courier and we have paid to them when we send goods to Europe. In our case: We have sent goods via DHL to EU country using DDP service. We have been invoiced from DHL UK to pay the VAT and Duty as we expected. How can we claim back the VAT figure? Do we just include the figure to section 4 on the Vat return? Thank you!
Posted Tue, 13 Jul 2021 12:45:56 GMT by HMRC Admin 9
Hi, 

It is unlikely that you would be able to claim this VAT on your VAT return as I don't believe from the information you have given that this is UK VAT.

Please contact an advisor to discuss this further:

VAT: general enquiries 

Thank you. 
Posted Tue, 20 Jul 2021 10:34:57 GMT by editb
Hi, I need some advise on the below please : EU supplier sends good to UK customer on DDP incoterms. Eu supplier now wants to invoice UK customer for the tax they paid and stating that UK customer can claim it back on their VAT return. The VAT amount in question shows on the monthly C79. I am not sure whether it is the correct way dealing with this. Thank you.
Posted Thu, 22 Jul 2021 12:21:14 GMT by Vince4321
I need some advice. If items get sent from the seller in China by DDP but the buyer cancels the order after shipping, who would be responsible for dealing with the items at the port, the seller or buyer? And what would happen to the foods in this scenario? Would they attract further fees or be returned to sender? Thanks
Posted Fri, 23 Jul 2021 11:27:42 GMT by Kirstin Bailey
I am in UK, I order goods from China, DDP terms (as wasn't VAT registered to begin with). The supplier charges me extra for DDP to include the VAT & Duty. Can I claim the VAT back now I am VAT registered on any new orders with DDP delivery terms.
Posted Mon, 26 Jul 2021 10:56:52 GMT by HMRC Admin 19
Hi,

Ordinarily, DDP means that the seller is responsible for the import, so they are the named importer and they pay the charges which means that the customer cannot reclaim Import VAT.

We are not entirely sure what has happened in your scenario so we would advise that you call the VAT Helpline on 0300 200 3700 to discuss this further. 

Thank you.
Posted Tue, 27 Jul 2021 11:18:40 GMT by HMRC Admin 19
Hi Kirstin Bailey,

In order to reclaim Import VAT the items need to be imported using your EORI number which will generate a C79.

If you are not using your EORI number and are not the named Importer then you cannot reclaim the VAT.

Please refer to the following link for further information:

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

Thank you.

 
Posted Fri, 06 Aug 2021 13:28:08 GMT by HMRC Admin 2
Hi Vince4321,

It is the responsibility of the party moving the goods to the UK. 

You can find further information here:

Tariffs on goods imported into the UK

Department for Environment Food and Rural Affairs

Thank you.
Posted Mon, 23 Aug 2021 10:24:47 GMT by AlanW
Hi We have got an EU based supplier who has stated that the sale is DDP and have sent us an invoice in Euros with UK VAT shown separately. They also have GB VAT number and have said that we can reclaim the VAT on our UK return, is that correct? Thanks
Posted Mon, 06 Sep 2021 10:58:34 GMT by HMRC Admin 17

Hi,
 
How the VAT is dealt with is very much dependent on who the named importer is.

Even if the goods are sent to you directly, it may not be you.

If you are the named importer and your EORI number is used to clear the goods then you will be charged Import VAT on entry and
will receive a C79 in order to reclaim the VAT on your VAT return unless you opt to use postponed VAT accounting.

If the seller is the named importer then the goods will be cleared using their EORI number and no charges will be raised for you.

As such, they would be able to charge you UK VAT in the normal way and you will be able to reclaim that VAT on your return subject to the normal input tax rules.

Please see the following link:

VAT guide (VAT Notice 700)  .

Thank you.
Posted Mon, 13 Sep 2021 16:05:39 GMT by Lina Vigier
DDP without VAT. Does UK Customs recognize this Incoterm from 2020 ? If yes, what do we need to state on our invoice as an EU Supplier so that our UK buyer pays VAT ?
Posted Tue, 14 Sep 2021 14:58:42 GMT by richardolly
Hi I am looking for some clarity please. We are a logistics company, who has a client in the UK who exports to Germany on DDP terms, but on their invoice it states Incoterm DDP Exclusion VAT / I know what DDP involves but the client states that they do not have any VAT bills to pay on behalf of the importer. I have checked the Commodity code 56039410 - where it shows no VAT - so why would the customer need terms DDP ? Thanks in advance

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