New VAT Requirement Before Shipping To the United Kingdom

Compulsory And Required Process For Imports To the United Kingdom

From 1st January 2021, All goods imported to the United Kingdom, regardless of value, will be subjected to VAT. The VAT rate ranges from 0% to 20%, depending on the contents of your item.

If Item Value is Up To £135

• VAT payment must be charged at the point of sale (before reaching UK customs).
• VAT must be declared via Economic Operators Registration and Identification Number (EORI).
• A 7-digit GB EORI number will need to be included in your shipping details.

If Item Value is Above £135

• the collection of customs duties and VAT remains at the point of arrival.
• Other documentation might be required before the customs duty officer requests it.

Customs officers will mark specific parcels as “suspicious” and ask for supporting documents for further inspection. For first-time customers, please note that customs clearance will take longer in the beginning and that supporting documents are more likely to be needed. Hence, failure to provide the EORI registration number (on the commercial invoice), items will be returned, and additional charges will be incurred by courier/customs.

What Is EORI?

• EORI, also known as Economic Operators Registration and Identification Number (EORI) – it’s a process to facilitate the collection, declaration and payment of VAT at point-of-sale.
• EORI allows the sender to import goods to receivers in the UK to collect, declare and pay VAT to tax authorities at point-of-sale instead of making VAT payment at the point when the goods are imported into the UK.
• This allows a much simpler process, a fast lane and better transparency for senders and helps to ensure efficient customs procedures.
• If EORI is not used – Items will be returned and incur additional charges.

To Help You Understand Better:

If the sender applies for EORI

• The VAT will be paid at the point of sale. Receivers will then receive their goods to their home directly without the need to pay VAT upon importation.

If the sender does not apply for EORI

• The VAT will be paid at the point of parcel arrival. Customs authorities/ postal operator/ courier company will impose an invoice for VAT payment as well as handling fees.

How To Register For VAT Number & Apply For GB EORI?

Step 1: Register for VAT

• Register access to the UK Government portal via https://www.gov.uk/log-in-register-hmrc-online-services;
• Apply for VAT online via https://www.access.service.gov.uk/login/signin/creds.
• ** Note that the online application takes around 20 days to get nine digit VAT number.

Step 2: Apply for GB EORI number

• Register online via https://ec.europa.eu/.
• The requirements for the EORI number are as follows:
• Valid VAT number, National Insurance number, Unique Taxpayer Reference (UTR), Business start date and Standard Industrial Classification (SIC) code, Government Gateway user ID and password.
• This EORI number will be provided within five working days.
• Lastly, successful EORI registration will be activated in the next 48 hours.