VAT on Imports from the EU

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Our client has been approached by their German supplier to become their UK importer/distributor in name only (they will not take title to the goods), they have signed a POA for another company to act as their Direct Representative to deal with the import. Our client is concerned about the VAT implications, as the importer they will be liable for VAT and customs clearance charges despite not owning any of the stock and are wondering about the possibility of requesting the German supplier to pay withholding tax in Germany so that they do not have to pay for it in the UK.

Is this possible or is there another way?

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By paul.benny
22nd Mar 2021 12:02

This all sounds unnecessarily complicated. B2B EU-> UK supply of goods is relatively simple, especially for the seller: seller ships with appropriate documents; importer takes care of customs procedures, duties, VAT. Some categories of goods (eg agricultural) may be rather more complex.

B2C supplies is a whole different thing if you want to ensure consumer doesn't get lumbered with VAT etc and because of the added complexity of returns.

What's the role of this third party holding a PoA?

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