I need a suggestion. A few days ago, I made a brand deal, but the brand is based in Europe. They have now sent me a VAT-free invoice. Please tell me if I need to pay VAT to customs during transit, or if I don’t need to pay VAT upfront since they are delivering my goods directly to my warehouse in the UK.
You need an EORI number in order to import goods; otherwise, they will not be released. I think there is a threshold for orders under £? where you don’t have to pay VAT and customs duties, but if the order exceeds that amount, you will need to pay both. Also, if you are a registered seller in Europe, you can claim that VAT back.
I’d you’re on postponed VAT accounting you can just pay for vat during next Vat return.
You will likely need to pay import VAT to UK customs when the goods arrive. The VAT-free invoice means you didn’t pay VAT to the supplier, but UK customs will require it upon entry.
Since the brand is based in Europe and you’re in the UK, you may need to pay VAT to customs upon arrival, even though the invoice is VAT-free. This is because of post-Brexit rules, where goods imported from the EU are subject to UK customs VAT and potentially duties. You can reclaim the VAT if you’re VAT-registered.