Paying VAT on items imported from Europe

by **davida** on Mon Oct 10, 2011 4:20 pm

I'm planning on buying some glass beads from the Czech Republic and also Germany. My question is I'm given the option of paying for them with or without VAT. Should I be paying the VAT in the country I am buying them from, and should I then pay the VAT again when I import them into the UK?

Many thanks

by **Kitty Kat** on Mon Oct 10, 2011 4:37 pm

davida wrote:I'm planning on buying some glass beads from the Czech Republic and also Germany. My question is I'm given the option of paying for them with or without VAT. Should I be paying the VAT in the country I am buying them from, and should I then pay the VAT again when I import them into the UK?

Many thanks

If you are VAT registered you can have the sale zero rated as it will be business to business within the EU (Czech is in the EU... right?).

If you aren't, then the seller will charge you VAT... and I believe that's it? If the seller charges you VAT UK customs won't... right? I've just lost all confidence... leave that bit to another to answer I think.....

by **Generix** on Mon Oct 10, 2011 4:58 pm

Kitty Kat wrote:
davida wrote:I'm planning on buying some glass beads from the Czech Republic and also Germany. My question is I'm given the option of paying for them with or without VAT. Should I be paying the VAT in the country I am buying them from, and should I then pay the VAT again when I import them into the UK?

Many thanks

If you are VAT registered you can have the sale zero rated as it will be business to business within the EU (Czech is in the EU... right?).

If you aren't, then the seller will charge you VAT... and I believe that's it? If the seller charges you VAT UK customs won't... right? I've just lost all confidence... leave that bit to another to answer I think.....

You're basically there Kitty.

OP:
If you are VAT registered then the Czech seller will make an intra-community dispatch to you. This means you have to account for UK acquisition VAT (hint: think EU import VAT) on your VAT return. You will need to provide the supplier with your UK VAT number. (also don't forget intrastat if you are over the threshold).

If you are not VAT registered then it depends whether or not the supplier has breached the distance selling threshold in the UK or not, if not then you will be charged Czech VAT, if they have then you will be charged UK VAT.

Hope that is clear.

(Kitty: Czech supplier charges no VAT, but UK customer self accounts for acquisition VAT, so no additional VAT charge from HMRC to account for after that).