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A little insight you should know!💡 The United Kingdom is placed fourth-largest market for eCommerce with a revenue of US$118 billion in 2021.
If you’ve been shipping a parcel to the United Kingdom, then you should know that custom checking might causes the parcel to be delayed to your customer/ recipients. We’re sharing with you all the most important information about the new VAT requirements of clearing customs for your shipment to the United Kingdom.👌
Compulsory And Required Process For Imports To United Kingdom
From 1st January 2021, VAT exemption has been abolished for importing items with values up to £15. All goods imported to United Kingdom regardless of any value will be subjected to VAT. The VAT rate ranges from 0% to 20% depending on the contents of your item.
If Item Value Up To £135🔽
For item values up to £135:
- Payment of VAT will need to be charged at the point of sale (before reaching UK customs).
- VAT will need to 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 Above £135🔽
However, for item values above £135:
- the collection of customs duties and VAT remains at the point of arrival.
- other documentation might be required prior to custom duty officer requests.
If you do not know yet, customs officers will mark certain parcels as “suspicious” and ask for supporting documents for further inspection. For first-time customers, please note that customs clearance will take a longer time in the beginning and that supporting documents are more likely to be needed.
Hence, failure to provide EORI registration number (on the commercial invoice), items will be returned and additional charges will be incurred by courier / custom as well.
What Is EORI?
👉 EORI also know as Economic Operators Registration and Identification number (EORI) – it’s a process to facilitates the collection, declaration and payment of VAT at point-of-sale.
👉EORI allows sender to import goods to receivers in 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 UK.
👉This allows much simpler process, fast-lane and better transparency for senders and helps to ensure efficient customs procedures.
👉If EORI not used – Items will be returned and incur additional charges.
💁♀️Scenarios To Help You Understand Better
👉 Scenario 1: If 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.
👉 Scenario 2: If sender do not apply for EORI
The VAT will be paid at the point of parcel arrival. Invoice will be imposed by customs authorities/ postal operator/ courier company for VAT payment as well as handling fees.
How To Register For VAT Number & Apply For GB EORI?🤷
Not sure how to do it?🤔 Don’t worry we’ve got you covered with the link for easier access to register for VAT number and apply for GB EORI!
Step 1: Register for VAT
- Register access to 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.
** Do note that the online application takes around 20 days to get 9 digit VAT number.
Step 2: Apply for GB EORI number
- Register online via https://ec.europa.eu/.
- The requirements of EORI number are as follow:
- 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 5 working days.
- Lastly, successful EORI registration will be activated in the next 48 hours.
💻 How To Submit GB EORI Number On EasyParcel?
With the registered GB EORI number given, you are require to update to your EasyParcel profile, under the “Company” tab, add to “EORI Number” column. Moving forward you’ll be able to courier your shipments to Europe countries without any hassle.
