Need some help on importing procedures and VAT

Need some help on importing procedures and VAT

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I met a potential client from China.  They are going to open a company in the UK and import the goods from China

While the meeting went fine, I realised during the meeting my knowledge of import procedures was lacking.

I have been to various HMRC and gov.uk website pages but not been easy to follow.

 All I would like to know is the basic steps when importing goods from Outside EU

1. Register for VAT

2) Get EORI number

3) Register for CHIEF so can submit import declaration documents (SAD) on Line ?

4) When importing complete SAD online and pay the VAT and customs duties (inc VAT) prior to goods arriving into UK.  Is payment to HMRC immediately after submitting SAD or at the time of goods arriving into UK

5) HMRC will send C79 to the company

6) Claim back VAT in the next VAT return

I would be grateful if someone can let me know if I missing anything above.  

On the VAT:

I assume if there is no Output VAT that HMRC will still refund the VAT.  

Can the company submit monthly VAT returns to get the VAT back quicker.  

If not VAT registered at the time of import - is there a way of recovering the VAT ?

Thanks

Replies (3)

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By shaun king
28th Mar 2015 18:54

Quite alot

You employ a shipping agent to make the entries - don't try doing it yourself. Do you need a licence for the goods? Is there a quota? Do you have a Duty Deferment account set up. Why is there no Output tax - are the goods Zero rated? Yes you can make monthly returns.

So many questions - so employ a shipping agent or pm and I will put you in touch with one. Money well spent

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Replying to shaun king:
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By peterwal
13th Jan 2020 14:28

hi shaun, we have anew small distribution company and we are importing clothing from Thailand. We have a EORI number and we are using a shipping agent. Do we still; have to register on CHIEF do you know? We have been waiting for a C79 certificate for a few months. Many thanks Peter

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By Jim100
30th Mar 2015 10:26

Thanks Shaun for the reply

I know the area is very complex

I didn't intend to help them ship their goods merely just to have some working knowledge and overview in case they ask questions and don't want to look silly.  

Should I be successful in picking up this client then I would just be filing their VAT returns.  

There will not be any out put tax for the first few months of the business but they intend to starting selling some of the imports in month 4.  Can they claim back the VAT in the first VAT return ?

This maybe a obvious question but assume they would need to be VAT registered before they import the goods otherwise they will not be able to get the VAT back?

 

 

 

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