If you export goods to the UK, there are several things you need to be aware of if customs and VAT are to be handled correctly.

Sales

Companies with B2C sales (consumers) to the UK will very quickly have an obligation to register in the UK. Sales of goods to UK consumers must be charges with VAT at the time of sale when the value of the goods is below £135 pounds.

Companies with this type of sales will have forced DDP delivery to British consumers. But, what at first glance looks incredibly demanding can provide lots of benefits when the company gets registered in the UK.

A registration obligation in the UK caused by the company’s BtC sales often provides opportunities for the company’s BtB activity too.

Now that the company is required to register, it provides opportunities for DDP delivery to both the BtC and the BtB segment.

It is often seen that when companies can sell to customers who get rid of unpleasant post-payments for duty and VAT, sales increase and customers return (Repeat customers). So here the registration obligation will become a door opening for increasing both the BtC and BtB sales, if it is done correctly.

 

Export

Companies with sales to Great Britain, Norway, Switzerland or other countries outside the EU must have their export registration in place. Correct export registration and any approvals from the local Customs Authority can be instrumental in the company being able to obtain a duty reduction in connection with imports. All of this depends on how the company’s product flow, approvals and documentation look like in the specific company.

The task is no less exciting because the same export registration for duty reduction cannot be used for all countries outside the EU. There are many possibilities and quirks when selling both outside and within the EU. Thus, requirements for a VAT and importer registration in the UK can quickly arise but so can the benefits of being able to deliver on DDP terms.

There are often opportunities and sales potential in getting closer to the end customer providing financial transparency and fast delivery.

Do you have a registration obligation or are you about to run into challenges related to sales and delivery to Great Britain, then please contact TIMEVAT.