Importing Goods From Gibraltar

[Marko]

If a UK business (*not* VAT registered) purchases goods from a UK VAT registered supplier, then the business pays the cost of the goods plus VAT@17.5%

If the business purchases from a VAT registered supplier based elsewhere in Europe, then the business pays the cost of the goods plus VAT@the rate in the other European country.

If the business imports the goods from outside the EU, then the business pays the cost of the goods (to the supplier) plus VAT@17.5% which is paid to the courier/freight forwarder who then pay it to customs & excise.

If the same business purchases goods from a supplier in Gibraltar, what would happen in this case? Is this considered an import from outside the EU? AFAIK, there is no VAT system in Gibraltar so the supplier presumably would not be adding VAT to the cost of the goods.

[Nigel Lord]

The premise of this is wrong, if a business buys from an EU business, aquiisition VAT is due in the UK at 17.5%. If it buys from Gibraltar, import VAT is due at 17.5%

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