Importing to another EU Country

D

danson

Guest
Hello everybody,

Just came across this forum by chance. Glad I did - lots of good information being shared by you guys! I was hoping you could help me as well...

We are looking to import a container of goods from China to Dublin. However we have two issues:

1. REACH regulations dictate that we must be the Importer (all the REACH registrations are under our name).
2. We are a UK business and have no base in Ireland and no VAT number etc.

We wish to import the goods with us being the importer of record but we have no VAT number with which to clear the goods.

Can we ask a Customs Clearing agent to use our name as the importer but our customer's VAT number so they pay and reclaim the VAT?

Thanks for any help you can give.
Dan
 
Hi Danson

You could ring:
Hugh Hopkins, McAuley Freight Ltd,
Tele +44 28 90 298181
Fax +44 28 90 777799
We have dealt with him for our containers and he brings them into Dublin and Belfast.
Always found him helpful and pleasant with all our enquires and I can tell you that has been a lot over the years!
 
Hi Danson,

In order to import a container into Ireland and be in a position to re-claim the import VAT, you need to be a (VAT) registered trader in Ireland. If you are not registered, you are unable to claim back the VAT that would be payable in Ireland on import.

The best way to deal with this is to clear the container at the point of transhipment in your name. Most containers from outside the EU destined for Ireland tranship via Rotterdam or Antwerp. Both of these EU jurisdictions allow the use of tax representatives (or Fiscal Representatives).

Assuming that both your company and the ultimate consignee in Ireland are registered for VAT in their respective jurisdictions (you in the UK, your client in Ireland) we can suggest the following.

1) The shipment is cleared in Rotterdam or Antwerp in your name. You settle the import duty at that point, but the VAT liability is accounted for by the Fiscal Representative in his VAT return to the Dutch or Belgiam VAT authorities.
2) After clearance the container moves from Rotterdam/Antwerp in "free circulation" to Dublin as if the goods were supplied by a company in Holland or Belgium (Intra European Supply).
3) The Fiscal Representative includes the transaction in his VAT return. The VAT liability he incurrs is eliminated by the immediate onward supply to you / your customer. In addition he files an Intrastat Return and a European Sales Listing (VIES return). In both cases the VAT nr of both yourself and your client in Ireland will need to be included.
4) You need to account for these goods as follows ;
A) You need to show the "aquisition" of these goods in your VAT return, showing
the VAT number of the Dutch or Belgian Fiscal Representative and calculate
the amount of VAT due on this acquisition at the appropriate UK Vat rate - most
likely 15%.
B) As these goods have been supplied to your client in Ireland, you are entitled to
claim a deductible input in the same VAT return for the same amount as
calculated on the "aquisition".
C) You need to include this transaction in your Intrastat return, showing as an
Intra European Aquisition the value of the transaction plus the VAT number of
the Fiscal Representative.
D) You also need to show the transaction of your supply to your Irish client as an
Intra European Supply in your intrastat return. In addition you need to include the
transaction in your European Sales Listing (VIES Return). In both cases you
need to show the VAT number of your Irish client.
5) Upon receipt of the goods in Ireland your client needs to treat the shipment as an Intra European Aqquisition. He needs to account for the (now) Intra European Aquisition in his VAT return. In box T1 he includes the amount of VAT (calculated @ the appropriate VAT rate - most likely 21.5% - over your invoice price) he is liable to pay. In box T2 he includes the same amount of VAT as a deductible input (provided he would be entitled to claim such an input as part of his business). In addition he shows the (invoice) value of the goods you supplied him in box E2 of his VAT return.
Furthermore he needs to declare this transaction in his Intrastat return, showing your VAT number as the supplier.

The advantage of this is that at no point in this transaction is VAT required to be paid. In every case it is deferred to the VAT returns of each trader (i.e. Fiscal Representative, you and your client).

If you require any assistance in setting this up, feel free to contact me at : +353-86-8055691 or rudy@rdglogistics.eu
 
Hi,

You should note that the rules in Ireland changed recently. You cannot obtain a non-resident VAT regisration until after your first import from outside the EU. Once you've paid the VAT, you can then submit for registration - only takes about 2 weeks. If you need more, look at
http://www.tmf-vat.com/european-vat
where it details the requirements.

Richard
 
Hi
Even Simpler than Rudolf's suggestion. Take the container into Beflast, clear it there under your UK VAT registration in the usual manner. Container truck delivers to Dublin direct from Beflast for a couple of hundred pounds.
Or select a shipping line transhipping to Dublin Port via Felixstowe or Southampton, and clear it under your UK VAT representation. Your agent needs to be on the ball to ensure that the container is manifested for clearance at the UK port.
Both of these methods we use for wholesalers delivering to Irish based retailers.
Hope this helped
Grant
 
Any Freight forwarder should be able to help you out. If you are using someone like Expeditors etc just give them a call and make them earn their money.
 
Hi
Even Simpler than Rudolf's suggestion. Take the container into Beflast, clear it there under your UK VAT registration in the usual manner. Container truck delivers to Dublin direct from Beflast for a couple of hundred pounds.
Or select a shipping line transhipping to Dublin Port via Felixstowe or Southampton, and clear it under your UK VAT representation. Your agent needs to be on the ball to ensure that the container is manifested for clearance at the UK port.
Both of these methods we use for wholesalers delivering to Irish based retailers.
Hope this helped
Grant

Hello Grant,

interesting post, eventhough the original post is from June last year ......

Do you apply the onward supply relief procedure to these transactions ? That should save the clients the VAT outlay and they can account for the transaction in their VAT return, instead of paying out VAT and claiming it back.

Look forward to your comments

Regards,
Rudolf289
 
Eliminating VAT at the point of entry

Any Freight forwarder should be able to help you out. If you are using someone like Expeditors etc just give them a call and make them earn their money.

Hello Purple,

unfortunately very few forwarders are familiar with onward supply relief or fiscal representation. Even fewer are prepared / in a position to offer this type of service.

I could stand to be corrected, but I don't think that Expeditors offers this kind of service.

Regards,
Rudolf289
 
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