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Reverse Charge on imports under £135

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Can someone please provide clarification of which boxes are affected on the VAT return where a UK VAT Registered business receives goods from outside the UK with a value of less than £135?

The VAT is reported in Boxes 1 and 4, and the taxable value is reported in Box 7, but do we also report the taxable value in Box 6? I cannot find anything specific on HMRC for goods less than £135, only for reverse charge on services or specific goods.

Many thanks

Ulrika

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Jason Croke
By Jason Croke
22nd Sep 2021 16:51

All goods, of any value, coming into the UK are inports. Import VAT is due at time goods hit the UK. There is no reverse charge for goods, that ended with Brexit.

There is still reverse charge for services, but your question is specifically about goods.

You need to read the Brace for Brexit articles here at AccountingWeb, but in essence either the freight company pay the import VAT, they recharge it to you and you reclaim it when you receive a C78 certificate from HMRC, or more likely, the freight agent has presumed you are using postponed import VAT scheme whereby you need to download your import certificates from the HMRC website and delicate in Box 1, Box 4 and Box 7 (not Box 6 as not reverse charge).

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Replying to Jason Croke:
Jason Croke
By Jason Croke
22nd Sep 2021 18:34

Too late to edit but noticed a typo.

The C78 is actually called a C79.

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By mcleodu
23rd Sep 2021 08:36

This is per HMRC: https://www.gov.uk/government/publications/changes-to-vat-treatment-of-o...

About halfway down, under the title 'Business to business sales'

"Consignments of goods not exceeding £135 in value, where the goods are outside the UK at the point of sale and the supply is to a UK VAT registered business, will also be covered by the new arrangements, which will operate as follows:

Where the UK VAT registered business provides the OMP or direct seller with its VAT registration number, the responsibility to account for VAT will switch to the UK VAT registered business customer, who will account for it by means of a reverse charge procedure. "

We are using Postponed VAT, however it would appear that consignments less than £135 need to be treated separately?

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Replying to mcleodu:
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By BusinessM8
23rd Sep 2021 12:11

How do we reconcile that with the first paragraph, wouldn't that have precedence here?

"For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), we will be moving the point at which VAT is collected from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments."

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Replying to BusinessM8:
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By mcleodu
23rd Sep 2021 14:23

That seems to be the approach for OMPs or B2C sales, rather than B2B.

Nice flowchart here: https://accountsco.co.uk/?resources=implications-of-brexit-for-vat-dista...

But still no firm resolution on which VAT Boxes are affected.

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