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Where Taxpayers and Advisers Meet

VAT-free shopping for EU resident

julian.rx8
Posts:1
Joined:Wed May 12, 2021 8:02 pm
VAT-free shopping for EU resident

Postby julian.rx8 » Wed May 12, 2021 8:15 pm

Hi there,

I really don't know where to ask such a question so I figured I'll register onto this forum, if that is the wrong place please move or delete the topic.

My current situation is as follows: I'm from Germany (german resident) and would like to take the broken engine of one my cars to the UK as there are some shops that have specialized in that type of engine (rotary engine) to get it rebuild. Now I got told that for me as an EU-citizen it is possible to shop VAT-free in the UK if I export the product and pay the import-tax in Germany. Is this still true after Brexit? Is it possible to deliver the broken and fetch the rebuild engine myself or is VAT-free-shopping only available if the goods are sent directly via a shipping company?

Thank you so much for your help, I'm really struggling to understand the British law as a foreigner.

regards
Julian

robbob
Posts:3150
Joined:Wed Aug 06, 2008 4:01 pm

Re: VAT-free shopping for EU resident

Postby robbob » Thu May 13, 2021 8:46 am

Hello Julian

Now I got told that for me as an EU-citizen it is possible to shop VAT-free in the UK if I export the product and pay the import-tax in Germany. Is this still true after Brexit?
Yes - for goods that leave the UK the seller can zero rate their supply as long as they have the reasonable evidence that the goods have left the country , that may be an intractable problem if you will be taking the goods back yourself. This shouldnt be a problem if they do the shipping as they well have the rleevant evidence. You should check with the relevant business concerned though before proceeding if you want them to zero rate the supply as not all uk small businesses are well informed ref the new rules. Note as there may be "services provided" here thats an equally important question if the work is eligible.

You cannot make claim to uk vat office to get vat charged in error back later - the supplier may be able to issues later credit note for vat if evidence turns up later that goods have left the country but some retailers may be wary that it might not be the same goods that have left if they are not in control of the process!


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