A company from China is sending goods to a UK customer on a Delivered Duty Paid basis. I assume the only way for the Chinese company to recover the import VAT would be to register for VAT in the UK. Is this correct?
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Why would the Chinese company wish to recover VAT?
The Duty is paid by the Chinese company and the VAT, if any by the importer. The duty would be irrecoverable, being a duty. Unless i have misunderstood the question.
DDP - Importer pays
Hi
Under DDP, the importer would be the Chinese company. Deliver Duty Paid means that all taxes and charges, such as VAT, are paid by the importer.
Can't the supplier use DAP or DAT instead?
Notice 702
The Chinese company can appoint an agent to act as the principal in supplying the goods - the agent imports the goods and recovers the VAT and then charges the UK customer with the cost of the goods. However, an easier way is to agree with the customer that they will import the goods, pay the Duty and the VAT and the Chinese company then refunds the cost of the Duty paid on its behalf.