VAT for B2C customers - EU to UK.

[JCKST1]

Hi guys,


I am looking for a quick bit of advice, if a private individual buys a bike from an EU country and has it shipped to the UK would there be VAT to pay on the declared value and if so would it then be possible to buy the bike from the EU shop excluding VAT so it is only paid once in the UK?

I understand that if you are a VAT registered business you can reclaim the vat but I presume being a B2C deal the the customer can not and then would be hit with two bills (vat on the purchase price and when it hits the uk), after looking online it appears there is no import tax on the bike itself but I am seeing conflicting advice on vat.

Thanks in advance.

[VEX]

Have you checked the HMRC site at all, i was looking yesterday for B2B requirements but there is definitely info on B2C needs and requirements.

It should be pretty clear cut as an actual bike purchase will be way more than the £130 limits that is being touted as a big issue.

[JCKST1]

I did have a look on there and had a chat with a couple of their staff on the live chat however I got conflicting info both times, once saying purchase without VATif possible and the second saying some suppliers will charge VAT and this would be enough to pass through customs.

Last thing I was to get hit with is a 20% bill on a bike worth over £3k!

[Tuna]

I *think* that the company exporting it should take off their local VAT from the price, then you apply UK VAT on import.

[VEX]

JCKST1 said:

I did have a look on there and had a chat with a couple of their staff on the live chat however I got conflicting info both times, once saying purchase without VATif possible and the second saying some suppliers will charge VAT and this would be enough to pass through customs.

Last thing I was to get hit with is a 20% bill on a bike worth over £3k!

From what i have read, although that seems conflicting, both could be true. If the company has registered in the UK for VAT, then they can charge you a vat inclusive price and it 'should' pass through customs as duty paid.

Alternatively, if they are not set up for UK Vat, then the will be import duty to pay as it crosses into the UK.

Now some freight companies will just broker for you and request payment on or before delivery, others will but it through an independent broker and you will have to pay them before it leave customs.

Edited by VEX on Wednesday 6th January 14:18

[The Don of Croy]

The supplier should be charging zero VAT, and HMRC will charge 20% plus duty on arrival (not sure if NI is the same).

Given it’s a recent change it could go either way.

I’m waiting for beloveds present, sent in December and thus local VAT charged, but delayed by channel port chaos and now due this week, possibly now liable for UK VAT too. Pooh.

[Aquarius909]

Can I ask the same question the other way?

What happens if a UK company sells to a B2C customer in Europe? And specifically, what if the value of the item is low (earlier in this thread a £130 limit was alluded to so is that relevant?)? Will a French or German customer have to pay local VAT and import duty?

[The Don of Croy]

Aquarius909 said:

Can I ask the same question the other way?

What happens if a UK company sells to a B2C customer in Europe? And specifically, what if the value of the item is low (earlier in this thread a £130 limit was alluded to so is that relevant?)? Will a French or German customer have to pay local VAT and import duty?

Currently it’s zero VAT here and the customer pays local VAT, and duty depending on what it is.

To the best of my knowledge...

[DSLiverpool]

On a private import purchase from the EU it’s entirely dependent if the supplying company has registered for U.K. VAT. If not you buy VAT deducted as you’ll be taxed on import, if they are registered then it’s nothing to pay by you.

However people don’t know how to handle the forms or do the checks just yet so hang fire a few weeks.