Share this content
4

B2b and b2c vat on goods UK to EU & EU to UK

B2b and b2c vat on goods UK to EU & EU to UK

Didn't find your answer?

Hi,

We are a British company trying to work out Brexit VAT implications, could you confirm if we got it right? All our products are manufactured in EU, warehoused in UK

  • We apply 0% vat on b2b sales of goods from UK to EU 
  • We apply 0% vat on b2c sales of goods from UK to EU, respective import vat is customer responsobility.
  • We are being charged 0% vat by EU suppliers for goods purchased and shipped to UK
  • Our production comprises of a set, component A is made in Austria then shipped to Czech Rep. where it's packed together with component B (made in Czech Rep.) and then the set is sent to UK. Questions: 1) we get charged 0% vat by Austrian supplier of component A despite shipping to Czech Rep as the component is eventually exported to UK as part of set, correct? 2. We also get charged 0% vat by Czech Rep supplier of component B, correct? 3. Do we get charged any import vat when clearing the set in the UK (we're UK vat-registered)? Clarification would be much appreciated!

Replies (4)

Please login or register to join the discussion.

avatar
By Wanderer
16th Jan 2021 02:29

Check out here then come back with anything that isn't covered:-

https://www.accountingweb.co.uk/content/brace-for-brexit

Thanks (1)
By williams lester accountants
16th Jan 2021 10:02

As your business seems quite complex, i would guess you already have an accountant, are they not able to advise? If not, you have the wrong accountant i imagine!

Thanks (0)
Jason Croke
By Jason Croke
16th Jan 2021 16:47

Any goods entering the UK will be subject to import VAT, so whilst your Austrian and Czech supplies will zero rate their export to the UK, the recipient, your company, will be responsible for the import duty and import VAT.

Assuming no duty because the goods are EU origin, so it'll just be the 20% import VAT to pay, so freight agent pays that and recharges to you plus an admin fee or you set up for Postponed VAT Accounting and account for VAT on your VAT return.

When you ship from UK to EU (B2B), your EU customer will incur import VAT at their end and so will have to pay freight agent, use a deferment account or their Country might operate a variation of postponed VAT accounting like the UK does.

Thanks (1)
Replying to Jason Croke:
avatar
By larsloom
17th Jan 2021 18:32

Thank you, Jason, much appreciated.

Thanks (0)
Share this content