EU company selling direct to UK customers

Hi, We are a Berlin based company, selling products worth over 135GBP directly to UK customers via our own online shop. We do not want our customers to have to pay extra charges when products arrive to them. I am confused how we are meant to do this. I have registered for UK VAT and attempted sending one customer a package with UPS with our UK EORI number and UK VAT number on the commercial invoice, and also listed the invoice amount as the price without UK VAT. I selected postponed VAT accounting and I selected DDP incoterms, but the customer still needs to be the 'Importer of record', I guess because we are not based in the UK? Which results in both us and them getting sent a payment request for Import VAT, I paid this but now I am not sure if we can actually claim this back as import VAT seeing as it went through UPS and is basically a payment to them? Additionally, as an EU company who registered for UK VAT, does this mean we will be paying import VAT and then also have to be charging sales VAT to the customer? Should we be showing UK VAT on the commercial invoice? I am trying to understand if there is actually any way to sell to UK customers directly from EU without them getting charged the import tax, and also if there is actually any advantage at all for us to be registered for UK VAT if we are only selling products over 135GBP, and the VAT registration does not seem to allow us to smooth the process for customers (as we are not UK based for import)? Thanks, 

Name removed admin .

Hi The issues you are having are most likely to do with the relationship you have with the carrier . It is possible for you as a non uk resident company to import in your own name however is is also a requirement that you have a UK based indirect customs representative. Unless you have agreed with your carrier that they will act in this capacity they will not do it automatically. Be prepared that they do not want to act as an indirect representative at all. Their default is normally to declare the receiver as the importer . If you request it they should be able to send charges back to you . They should certainly not be asking both you and your customer for payment of import charges. If your customer is declared as the importer then your EORI will not be used so PVA cannot apply. I suggest that you seek some professional advice on how to proceed.

Thanks for the response. My co-founder is actually based in the UK, would it be possible for him to be the UK based indirect customs representative, and if so what would be the process to do that? Failing that, is there a standard way companies from the EU are usually shipping goods worth over 135gbp directly to UK customers?

Firstly there isn’t a standard way that companies use to import into the UK. Each company is different and has different commercial considerations. Usually the customs representative is someone who is able to submit a customs declaration to HMRC. It is unlikely that this would apply to your co founder as from what you have described it is the business not the individual importing. As mentioned this is really something you need to resolve with your chosen carrier. Each will have their own commercial preferences. The rules are exactly the same as for UK companies trying to import into the EU. It is one of the consequences of Brexit fir both the UK and EU.

Hi,

If you are selling goods over a value of £135 to UK customers and you are the importer of record then you are the deemed owner of the goods in the UK and so you would account for the import VAT and then charge and account for VAT on the onward supply of the goods in the UK. This would be a separate VAT invoice raised and would not be included on the commercial invoice.

Import VAT however should not be charged twice to both you and your customer. If you are charged import VAT then you have an entitelment to recover this as input tax if you are registered for VAT in the UK

You can see the creiteria here:

Introduction to input tax

Check how to get your import VAT certificate (C79)

We would advise you to speak to the shipping company about the regulations concerning who would need to be the importer of record in the UK and also speak to our International Trade Team about this.

Imports and exports: general enquiries

As the importer of record it is the responsibility of the importer to account for the VAT and then to account for the onward sales VAT in the UK.

Thank you.