The person liable to pay VAT at import is the person named as the importer :

• If the EU client takes the status of importer, he/she will be the person liable to pay VAT at import. The supply of goods which is carried out by the supplier in the United Kingdom is considered having taken place outside the Community (i.e. in the United Kingdom). No EU VAT is due on this supply.

• If, on the contrary, the supplier in the United Kingdom takes the status of importer, he/she will be the person liable to pay VAT at import (that is always the case when it concerns a supply with installation or assembly carried out by the supplier or on his/her behalf). The supplier must register for VAT purposes in the EU.  The supply of goods that he/she carries out afterwards is considered as having taken place in the EU and the EU VAT is due on this delivery (with or without the application of the reverse charge mechanism depending on the VAT status of the purchaser).

If you as a European Business, act as the importer of goods, you must:

• File an import declaration pursuant to the customs rules;
• Pay the VAT due on the importation when the IM-A (import declaration) is validated by the Customs

The key VAT question linked with Brexit for EU firms purchasing goods from UK suppliers will be at the point of importation: who whill act as the importer of the goods? If you are designated as such, you will have to comply with additional VAT administrative obligations linked with the importation of goods as well as with potential prefinancing of VAT (cash flow issue).

Our firm has however expertise to minimize negative VAT impact linked to importation of goods: VAT exemptions (customs warehouse, scheme 42, etc.), deferred VAT payment, Postponed VAT accounting, etc. The type of solution to be implemented depends on the country where the goods are physically imported.