VAT vs EORI Numbers
We suggest all retailers get registered for VAT so they can claim back the VAT that is added onto imports into a country. All countries can have different VAT Rates so it's important to check your government website. In the UK It's 20%. This is added by default to any bill when goods are received in customs.
Much like the VAT Number this is a Brexit specific number that helps to speed up the customs process by linking your VAT number to a trading number specifically for the EU. Similar to a bank sort code it just helps them track where shipments are coming from and where companies are based.
VAT vs Tariffs
Import charges can be confusing as different delivery companies format them in different ways but essentially they have 3 main elements:
1 - Customs Charge - this is just for the handling of the goods through customs and is usually a default charge no matter how big the parcel is. When we import from outside the UK this is usually £15.
2 - VAT - This is just your government tax on goods as a proportion of the total value of the goods. From July 2021 there is no minimum threshold for this to the EU. If your countries VAT Rate is 20% then 20% will be added to cover this.
3 - Tariffs - These are extra tariffs to keep the domestic market competitive to cheaper imports to help support mainly areas like farming. None of our items should have extra tariffs on them. However depending on how the company formats the invoice the VAT maybe put in the Tariff section. It's always best to check and then going forward you will understand that courier companies format.
Reverse Charge VAT
If you are buying in the EU we invoice based on Reverse Charge system so you don't pay VAT to us and then have to pay it on importing. Instead we are able to give you an invoice with 0% VAT Added and then your country will sort out the rest. Some items are VAT exempt even in the EU so this would still have 0% VAT Added.
Get In Touch
We have learnt a lot with the Pandemic and Brexit about the best business practices for importing and exporting from and to the EU so are happy to answer any other questions. Just send an email to firstname.lastname@example.org.