VAT deferred, also called financial customs clearance, means that when the goods enter the EU declaration country, when the destination country of the goods is other EU member states, the VAT deferred method can be selected, that is, the seller does not need to pay import value-added tax when importing goods, Instead, it is tax-deferred to the final delivery country.
For example, if the seller’s goods are cleared from Belgium and declared through tax deferred, the goods are finally delivered to other EU countries, such as Germany, France, the UK and other EU countries. Enterprises only need to pay customs duties in Belgium, and do not need to pay import VAT.
Taking sea freight as an example, if we want to send a batch of goods to Bremen, Germany, according to the normal channel, the goods will be sent to Hamburg, Germany’s basic port, and then the German agent will clear customs and deliver them. But in this case, Shipper or Cosigner needs to pay VAT at the time of customs clearance, which will not have the effect of delaying the payment of import value-added tax.
However, if the goods are first sent to other countries, such as Belgium or the Netherlands, for customs clearance in Naples or Rotterdam, the consignee only needs to pay customs duties first and does not need to pay VAT. Through the tax deferred declaration, the tax is deferred to Germany, so as to delay the payment of import value-added tax and save cash in a reasonable and compliant manner.
Two ways of UK import deferral:
The first one is: VAT deferred account
The value-added tax deferred account is an account number applied by the logistics customs clearance company at the customs. It can defer all import taxes, including customs duties, consumption taxes, etc. The value-added tax deferred account is only suitable for logistics customs clearance companies.
The second is: deferred value-added tax accounting
Deferred value-added tax accounting is applicable to Chinese cross-border e-commerce sellers. It is an account number filed with the British tax bureau. It can only defer import VAT, while customs duties and other fees still need to be paid at the time of import.
The application of VAT deferred accounts by Chinese sellers is handled by the logistics customs clearance company. They fill in the application form at the time of delivery. In addition to providing the corresponding company information, VAT and RORI numbers, Chinese sellers must sign a tax agency authorization guarantee. Only those who are eligible to apply for deferred VAT accounting deferred account.
After successfully applying for deferred VAT accounting, by comparing the import documents for customs clearance with the original import documents: we found that the payment method has changed from F to G, and G is the payment method number displayed in the latest VAT deferred account.
As a cross-border e-commerce seller, if you use your own VAT to clear customs independently and need to apply for deferred imports, it is most appropriate to apply for deferred value-added accounting.
Moreover, the deferred import VAT does not need to be paid during customs clearance. You only need to fill in the import quota in the quarterly declaration, because this part of the amount has been included in the sales VAT withheld by Amazon, and the VAT refund is exempted. link.
Post time: Aug-08-2023
