Thank you @carol conway. Of the people I have asked, including Avalara, who you'd expect to be all over everything, few people had experience with it. Might just be this part of the world. You made reference to the EU. I am based out of the EU. As far as I know, PIVA still applies. Am I wrong here? Or are you referring to the DHL, UPS lot? I will be the importer on record, so I can claim back the tax. I am still trying to narrow down a shipper and a customs agent, so depending on what services they offer, TBC. I will have to register for VAT and get the EORI number before putting all this in place.
@ Customs oldtimer - Thank you for your response. Yes, shipping individual consignments from Asia is just not practical. So the plan is to ship in bulk to a fulfilment centre. I read the OMP guideline a while back but will refresh. Thank you for sharing that excerpt. Feel much better. Still looking at how much Amazon take as a haircut before deciding.
Noted as well on CDS. A part of me is very much looking to outsource the whole thing from shipment to reporting TBH.
On Duty free, yes, I am banking on there being no additional duties paid. Using the tariff duty calculator, it says 0%. I was reading the guidance on defining place of manufacture, what counts as duly processed, etc. It's all a bit much. I am not sure what would count as suitable evidence, but 90% of the 'assembly' is in this location. The underlying constituents are from multiple countries. Once I identify a customs agent, I hope they can provide some guidance in what is suitable.
Hello All. I am hoping to clarify a few points on PIVA as it seems not many people are taking advantage of it. I have tried to find some information on the forums here as well.
Context: overseas seller, looking to pre-import goods to the UK from a ‘trade agreement’ location. Goods will either go to a fulfillment Centre or an OMP for delivery when a customer (non-business) places an order.
I’d like to reduce initial cash outlay and wanted to take advantage of PIVA but concerned based on what appears to be a low take up rate.
Option 1: import and pay import tax (no duties) at 20% of cost of goods plus shipping. Reclaim this (full amount?) via the C79 form? Collect VAT at point of sale and remit to HMRC?
Option 2: Largely same as 1 but deliver directly to an OMP and pay nothing based on a zero rate sale (is this correct)? Would I then not be allowed to register for VAT and ergo unable to claim back import tax?
Option 3: import, apply for CDS, postpone payment of import tax (calculated at 20% of cogs), then declare this on my return alongside VAT collected from sales remitted to HMRC? So sim total paid here would be nil?
It is possible I have oversimplified this just as much as I have complicated it. :-(
Any input at all would be really appreciated. Even Avalara said they don’t help with PIVA.