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Posted Tue, 10 Nov 2020 10:09:50 GMT by calvert
Under the new rules starting on 1st January 2021, goods imported into the UK with a consignment value of under £135 have a different treatment to goods over £135. Can a company opt to make all imports using the treatment for goods over £135 for simplicity? Or is the rule for the treatment of goods under £135 mandatory? Thank you for your help.
Posted Tue, 24 Nov 2020 08:35:15 GMT by HMRC Admin 8
Hello,

Legislation has been published which provided that anyone wishing to submit a bulked import customs declaration after 31 December 2020 needs to be authorised by HMRC. The authorisation process opened on 1 October and an application process published on gov.uk

Existing users of bulking can continue to use bulking without having to submit an application form if HMRC are satisfied that they meet the bulking eligibility criteria. HMRC commenced formally informing existing users from 1 October.

Only goods contained in a postal packet that are classed as non-excise/restricted goods and that value of each parcel does not exceed £135 in value can be subject to a bulked customs declaration. Furthermore, only goods where there is no liability to excise or customs duty and the VAT is treated as supply VAT and accounted for by the overseas supplier or online market place can be subject to a bulked customs declaration.

There is guidance available at:
Apply to import multiple low value parcels on one declaration from 1 January 2021

Regards,

Posted Thu, 07 Jan 2021 11:46:33 GMT by HMRC Admin 2
Hi,

From 1 January 2021, the VAT treatment of B2B imports of goods in consignments not exceeding £135 in value will change. 

For imports of goods into GB from outside the UK, these changes will result in supply VAT being due instead of import VAT. The VAT accounting treatment for business to business sales of goods imported in consignments not exceeding £135 in value will be subject to supply VAT. Where the business customer is VAT registered in the UK and provides its valid VAT registration number to the seller or the online marketplace, the VAT will be accounted for by the business customer on its VAT return by means of a reverse charge. The business will be able to recover that VAT as input tax, subject to the normal VAT recovery rules on the same VAT return. The changes will not apply to consignments of goods containing excise goods or to non- commercial transactions between private individuals. Existing rules will continue to apply for these transactions.

However, for imports of goods into Northern Ireland from outside the UK or EU in consignments not exceeding £135 in value, VAT registered businesses must use Postponed VAT Accounting (PVA). Where a business customer provides its valid VAT number to the supplier or the online marketplace, the business will have to ensure that they select the option to use PVA when submitting their customs declaration. The UK recipient business will account for the import VAT on their VAT return and will be able to recover that VAT as input tax, subject to the normal VAT recovery rules on the same VAT return.

For imports of goods in consignments exceeding £135 in value a businesses registered for VAT in the UK will be able to account for import VAT using PVA on its VAT return for goods they import into:
  • Great Britain from anywhere outside the UK 
  • Northern Ireland from outside the UK and EU
There will be no changes to the treatment of VAT for the movement of goods between Northern Ireland and the EU.

Businesses do not need any approval to account for import VAT using PVA on their VAT return. Businesses can select that they will be accounting for import VAT on their VAT return and will need to provide their EORI number and VAT registration number when completing their customs declaration.

Thank you.
 

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