Share this content

DAP Incoterms but no Duty/VAT being dealt with

EU Supplier refers to DAP incoterms but appears to be DDP. What action required?

Didn't find your answer?

We have a client who imports materials from Germany. Invoices are approx 3000 euros.

The supplier has told our client that there's nothing further to pay and the VAT and import duty "is all dealt with" but the invoice refers to terms being DAP (Incoterms 2010). 

The goods arrive at my client's premises in the UK and the invoice shows that the supplier has a GB VAT number and EORI number also, but no VAT amount is specified on the invoice.

I was under the impression that DAP Incoterms would mean that my client would have to pay the import VAT, customs clearance, duty etc however there's nothing. It sounds like it's really DDP. I have however read about "DAP cleared" or similar extensions where the seller does deal with customs clearance, however the cases all still refer to the UK importer dealing with recovery of import VAT.

That isn't happening however. An import declaration C88 would be received with a C79 if it's really DAP so I'm a bit concerned as I'm worried they will struggle to reclaim any later assessed VAT without it.

What do people make of this? Not my client's problem? Or should they clarify that it's really DDP or "DAP cleared"? How would the goods get to them under DAP without VAT being paid somewhere along the line?

Many thanks,

Replies (3)

Please login or register to join the discussion.

By Wanderer
04th Aug 2021 16:01

Import documentation is all over the place with freight handlers at present. Is it worth worrying about? Why not just look at this practically:-

If they pay the VAT, claim it.
If they don't pay the VAT, account for it under PVA.

Thanks (1)
Replying to Wanderer:
By norstar
05th Aug 2021 09:45

So I've noticed! I was concerned about a) the correct presentation in the VAT return and b) if there was a possibility of a later import VAT bill being raised which they would be unable to claim due to lack of documentation.

Thanks (0)
Routemaster image
By tom123
05th Aug 2021 13:43

Bear in mind that if it has come in ad DAP the recipient is responsible for uk customs clearance. These are costing me about £50 via my import broker.

This year you have 6 months from delivery to sort this.

That goes next year.

I guess some people will be unaware or ignoring this.

In your case could it be that customs is being done by the supplier using their UK vat no?

In which case I don't know why they aren't charging you uk vat

Thanks (0)
Share this content