Customs oldtimer

FYI . A CN 22 is an international postal customs declaration label.

Hi Firstly I would recommend negotiating different terms of supply. As a non uk resident business what you are trying to do is very difficult. Acting as an importer when you are not A Uk resident business is possible in law. You must however appoint a customs import agent to act as your indirect representative. In practice very few customs agents would be willing to do this as they become legally liable for duties jointly with the importer. Only VAT registered businesses can usually reclaim import VAT back. Any import duties due are not recoverable. If you are also making taxable supplies ( ie the onward sale to the UK business ) then you are obligated to register for VAT . This would be as a non established taxable person. There is a zero threshold for VAT registration in these circumstances. Registration of a UK business would not solve the problem unless it is clear there is physical presence of a business in the UK. If your customer is willing to act as importer the process is much easier for them as a uk based business. I suggest you get some professional advice .

Hi gail.robertson It is correct that UK VAT is zero rated for export. As the goods have entered Republic of Ireland Irish import VAT will be due. The customs agent will have paid this on your behalf and has then charged it on to you . Presumably this is what was agreed when the agent was engaged. Irish VAT rules on import VAT recovery must then be complied with . If you have an Irish VAT registration you should also consider whether you should charge your customer Irish VAT . The correct VA T treatment will depend on the circumstances of the sale and whose VAT registration number was declared on the import declaration. Your enquiry would therefore be better addressed to the Irish Revenue Service.

When I said HMRC are not likely to provide an answer to a specific set of circumstances. I should have clarified that they cannot provide an answer to a specific set of circumstances on this forum. I simply quoted additional HMRC guidelines on what they look for when a business is registering for VAT and therefore what they need to consider that the business is operating in the UK . Usually a place of business isn’t difficult to determine , however where there are solely overseas directors of a UK incorporated company and no direct uk employees of the company it becomes more complex and subject to additional consideration. https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat/vat-notice-7001-should-i-be-registered-for-vat

HMRC are not likely to provide an answer to a specific set of circumstances. You may also find it useful to consider how HMRC interpret the principal place of business PPOB which is needed for a VAT registration for a UK established business. Normally, the PPOB is the place where orders are received and dealt with and the day to day running of the business takes place. An accountants office , registered office or private address would not normally be considered a PPOB The PPOB is usually where HMRC expect to be able to examine the VAT records, and there should be someone at the premises that is responsible for the company’s VAT affairs, although there can be exceptions to this . If there isn’t sufficient evidence that there is a physical premises in the UK where the business is operating from but instead the business is effectively run from overseas then this is likely to be considered a NETP for VAT purposes. The rules for registration of a business with companies house by overseas directors , permanent establishment for tax, and business establishments for VAT and customs are all slightly different. It is probably best if you seek some professional advice on the specific circumstances you have described.

A private individual does not need an EORI number or to register for VAT to import goods for their own use. You will pay the import duties and import VAT on import. You need to understand how the goods are arriving in the UK as you may need to approach a customs agent to make an import declaration for you. This would be applicable if the goods come by road , sea or air freight. If the goods are coming via an express courier such as FedEx , DHL. UPS etc they will usually make the customs declaration as part of their services and contact you for payment of duties and taxes. They may also ask for admin charges if this was not covered by the sender.

If Ryanair are not the importer and haven’t provided you with authority to act as their representative then I hope they are not mentioned on the import declaration. It sounds like you are acting as indirect representative for Boeing USA who are importing their own goods. If that’s the case then there cannot be a sale as a company cannot sell to itself and Boeing can provide the valuation information as importer. The USA uses the same sort of valuation rules as the UK so should understand the different methods.

I don’t work for HMRc but I assume you are taking this reference to shipments over £20,000 from the guidance notes to CDS data element 4/16. The notes are guidance for declarants/ representatives who are taking instructions from importers as to the correctness of using VM1. They must receive positive instructions from the importer ( legal customs debtor) to use method 1. It is unlikely that a third country freight forwarder would be in any position to confirm the correct import value to be declared by importer/ buyer as they would not usually have sufficient knowledge about the circumstances of the sale. For instance would they know if there is any additional charges invoiced separately such as royalties, or assists etc. In fact would a 3rd country freight forwarder be in a position to provide UK import clearance instructions at all if they are not the importer into the UK . The importer should keep evidence of the correct value including contract information and evidence of payment.

Valuation method 1 cannot be used if there is not a sale. You should look at the other valuation methods in turn. https://www.gov.uk/government/collections/working-out-the-customs-value-of-your-imported-goods The declared export value will generally be less as the import customs value would be as it would not include freight. In any case the export value is declared to the Dutch customs and import value to HMRC. There is no requirement for Dutch customs to communicate with HMRC or any requirement to present export documents when declaring an import.

If you are based in the UK then there is only a requirement to register for VAT if your turnover exceeds £85,000 in a rolling 12 months. There are other obligations some info is here https://www.gov.uk/set-up-business https://www.gov.uk/business-support-helpline