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UK sale but goods delivered from EU

What to do post brexit if a UK company sells to UK customer, but goods are from group company in EU

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Hi, Please could I have some help with regards to the VAT and duty treatment, post brexit, if a our UK company sells to a UK customer, but goods are directly delivered from an intercompany in Germany. 

Many thanks

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Jason Croke
By Jason Croke
30th Nov 2020 07:57

When goods enter the UK, from EU, they will be subject to import duty and import VAT. Someone will have to pay that before the goods arrive at their destination.

If UK company is VAT registered, the goods could enter the UK with their UK EORI/VAT number (as importer of record) and that puts the import duty/VAT onto the UK company, they can account for import VAT via the VAT return (cash neutral) and the import duty (if there is any/depends on deal or no deal outcome).

There are many variations to this, the intercompany in Germany could register for UK VAT for example. Also, you need to know what the commodity code for your goods are so as to work out what, if any, import duty will be.

You don't state if the customer is another business or a consumer, that may potentially have a different outcome.

You need to speak with your Accountant or a specialist to see what solution(s) are best for the business, type of customer, value of goods, etc.

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Replying to Jason Croke:
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By Hannyhan
30th Nov 2020 10:57

Hi
Many thanks for your reply

The intercompany in Germany is registered for uk vat.
The customer is a consumer of the uk company

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