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VAT where EU supplier registers in the UK

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A client imports various goods from suppliers in the EU.

Currently most of their suppliers are operating DAP. One has now registered in the UK and will be operating DDP.

The client has received an invoice from this supplier with 20% UK VAT on.

This may be a really silly question, but how is this accounted for on the VAT return. Presumably it is like a normal UK VAT invoice?

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Jason Croke
By Jason Croke
22nd Mar 2021 11:59

No such thing as a stupid question when it comes to VAT.

If the EU supplier has registered for UK VAT, then the EU supplier will issue a UK VAT invoice (check it meets the usual rules, GB VAT number shown, etc) and we just reclaim the VAT in Box 4 like usual.

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Replying to Jason Croke:
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By Craig66
05th Apr 2021 09:57

Hopefully, you don't mind me jumping in on this, but my secondary question is related.
We also have a supplier based in the Netherlands who invoices us but delivers to our GB customers direct (dropship). They are supplying the goods for us under DDP Incoterms. They have registered with HMRC in the UK and have a UK EORI. However, they are still issuing us with 0% VAT invoices and saying on the invoice that we need to account for the VAT (like the old pre-Brexit days). Are they doing this incorrectly? Should they be issuing us with a domestic rate invoice as they are registered with HMRC?

We have one other supplier who is doing the same format of supply using UPS for our customers. They are not registered in the UK but they are supplying under DDP terms. How do we process their Invoices on our VAT return now? They are also 0% rated with the same "customer to account for VAT reverse charge statement" on them as they used to be before BREXIT happened.

I am pulling my hair out trying to figure this out.
The standard method of DAP Incoterms is pretty straightforward in how we get our customs agent to process the import clearance and we download the statement for the import VAT to declare in the relevant boxes of the return. But the processes for DDP supply seem a bit more confusing as the supplier effectively becomes the importer and not us (as we are with standard DAP import supplies).

Thanks (0)
Replying to Jason Croke:
avatar
By Craig66
05th Apr 2021 09:57

Hopefully, you don't mind me jumping in on this, but my secondary question is related.
We also have a supplier based in the Netherlands who invoices us but delivers to our GB customers direct (dropship). They are supplying the goods for us under DDP Incoterms. They have registered with HMRC in the UK and have a UK EORI. However, they are still issuing us with 0% VAT invoices and saying on the invoice that we need to account for the VAT (like the old pre-Brexit days). Are they doing this incorrectly? Should they be issuing us with a domestic rate invoice as they are registered with HMRC?

We have one other supplier who is doing the same format of supply using UPS for our customers. They are not registered in the UK but they are supplying under DDP terms. How do we process their Invoices on our VAT return now? They are also 0% rated with the same "customer to account for VAT reverse charge statement" on them as they used to be before BREXIT happened.

I am pulling my hair out trying to figure this out.
The standard method of DAP Incoterms is pretty straightforward in how we get our customs agent to process the import clearance and we download the statement for the import VAT to declare in the relevant boxes of the return. But the processes for DDP supply seem a bit more confusing as the supplier effectively becomes the importer and not us (as we are with standard DAP import supplies).

Thanks (0)
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By Wanderer
22nd Mar 2021 12:02

SkyBlue22 wrote:

Presumably it is like a normal UK VAT invoice?

Yep.
Thanks (1)
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