Hi All, Just a quick question concerning shipping to the UK from the EU after BREXIT. I have generally decided not to sell to the UK as I don't want the administrative headache, but I do need to send an item to a customer (ordered before dec 31). My question is if I am only sending 1 package ( over €150 ), do I still need to be UK VAT registered? Have an EORI #? Or can I just send? The customer understands that while I won't be collecting VAT from him that he will be responisible for it upon receiving. If I don't need to be registered, what do I need on the Commercial Invoice?
I'm not sure if you have already solved this but you should be able to ship DAP (or DDU) without a VAT registration for orders over €150. The carrier you use will be able to inform you what information is required on your commercial invoice but you won't need UK VAT or EORI. For more information on this you can download the Bezos.ai full ecommerce Brexit guide here https://brexit.bezos.ai (Full disclosure I work for Bezos). Also if your products are manufactured in the EU or UK make sure to declare rule of origin so that your customers don't have to pay customs duty as well as VAT!
Thanks for the response. Pre Brexit, I shipped to the UK via Fedex so I assume they will let me know what is needed for the Commercial Invoice (probably just HS Code and my EU Country of Origin). As you explain, over the €150 mark, my customer would be responsible for the UK VAT upon receipt and, of course, they would pay my price VAT-free at check-out (I forgot to add the I'm B2C). I would not need a UK VAT or EORI. This is a perfect solution for this particular shipment. Going forward, under the €150 mark, I would charge, collect and submit to the UK government therefore requiring at UK VAT registration?
One thing that I didn't think of which you point out, is if I'm shipping DAP (I would be paying shipping up front) then I have to make sure that it is clear on my shopify check-out that the customer will be responsible for VAT (and possible duties) once it reached the UK. While I mention it under my shops policy and FAQs, I might have to make it more obvious at check-out. Nothing worse than a unhappy customer.
In general, since I have product above and below (more above) the €150 mark, then I have to figure out if it is worth getting a UK VAT or to just limit the product available to the UK to be over the €150 mark.
Yes FedEx should tell you what you need to provide but for exporting from the UK you need (I assume exporting from the EU will be similar):
• Sender details (Name, address, telephone number and email)
• Sender EORI
• Recipient details (Name, full address, destination country, telephone number and email)
• Item details: (Description, quantity, weight, and value of contents)
• Country of origin of contents
• Shipping & insurance costs
• HS tariff code
• Reasons for export – (Sale, Return/Replacement, or Gift)
For orders under €150 you will require a UK VAT number and I believe need to charge VAT at checkout (point of sale). Unless you are selling through a marketplace, the marketplace is now responsible for collecting VAT (from customers) on orders under €150.
Exactly and I have heard of numerous sellers who have not made the extra charges clear and are having customers refusing to pay the extra charges so the products are returned to the seller by the carrier at the sellers expense. Its definitely better for customer retention to make it overly clear.
Yes that's down to you based on how many sales you are doing to the UK etc. You can also consider using third party fulfilment and splitting your stock between UK and EU warehouses, that way you can avoid your customers having to pay customs handling fees, and customs duty.