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    1. PeterPiper is offline

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      #1

      Importing to UK - Are VAT and EORI numbers required for Importing

      I have already placed an order with a company in Asia, and it is the first time I am importing from outside the EU. The trading company that I’m using, just contacted me and said I need an EORI number and a VAT number in order to get the shipment cleared and through customs. How are these two things different?

      I have never heard of the EORI number; however, I’ve just begun importing. Is this something new in the government’s requirements for importing into the UK? I’m wondering how long this process is going to take, because it might cause me to have to pay for holding storage when the shipment arrives.

      I am also wondering how the VAT and EORI numbers would be beneficial for me to have? If anyone can shed light on this issue, I would be most grateful.
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    3. Luis21 is offline

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      #2
      A VAT number is required to pay taxes! Let me explain both VAT and EORI numbers to you and their purposes:

      You need a VAT number to pay taxes, and this number is used within the UK to determine the amount you owe, based on the total amount of goods purchased. So, if you are importing as a business, and not an individual, you definitely need a VAT number.

      The government determines specific amounts that are due on goods, and VAT is owed on most imported goods that are shipped in from the EU when the value is over 18. This number is so low that it makes it necessary for most resellers to have a VAT number.

      There are certain instances where VAT is zero-rated for goods. You can find out which goods are VAT rated and follow HMRC guidelines for importing and VAT here.

      The EORI (Economic Operator Registration and Identification) number doesn’t help track taxes; it’s simply a measure that identifies you or tags you as a business operator within the European Community, and it gives you license, so to speak, to do business within the EU. It’s your unique number that identifies you within each country.

      It is a requirement for any business that is trading outside of the UK.

      It is meant to increase security measures, and it just makes it easier for Customs in the EU to identify you and know who you are. It allows for easier transportation of goods between the states.

      This link will take you to the HMRC website to register for EORI. You can do it online.

      If you don’t yet have VAT, you can sign up for VAT online on the HMRC website.

      So, in basic terms, a VAT number is for taxes (when you import or export goods). However, an EORI (Economic Operator Registration and Identification) number is for different purposes -- customs. The EORI number simply identifies you as a business operator and helps you solely with customs. So, the two numbers are for entirely different purposes. That is because every business operator with a VAT number doesn’t necessarily need to import goods. For those that do, the EORI number is required.

      The EORI number doesn’t help track taxes; it’s simply a measure that identifies you or tags you as a business operator within the European Community, and it gives you license, so to speak, to do business within the EU. It’s your unique number that identifies you within each country.
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    4. PeterPiper is offline

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      #3
      I know that a TURN was required in the past. Do I still need this and an EORI?

    5. Luis21 is offline

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      #4
      The EORI replaces TURN. The TURN identification hasn’t been used since 2009. EORI is now the sole way to identify business operators. If you already had a TURN number, the government should have transferred that number to an EORI automatically You should consult with HMRC.

      This is the link to search for your EORI number, if it’s been automatically carried over.

    6. CatchMe98 is offline

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      #5
      In the future, you can give your VAT number to any company within the EU from which you import and they will give you zero-rated on future purchases. This just makes paperwork so much easier. Of course, youll have to add 17.5% VAT for the UK for reselling the items, but you can reclaim this on from HMRC. Basically, the VAT number will streamline things for you immensely.

    7. PeterPiper is offline

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      #6
      Thanks everyone.

    8. suzygood4u is offline

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      #7
      VAT number is not needed for importing or exporting, but it is needed only when you are required to collect and pay the govt vat on goods you sell. This is needed when you have a sales turnover over a certain threshold, at the moment standing at 70k, once you have reached this amount of sales then you will need a vat number and pay vat to the govt. on the up side is that once you have a vat number you will be able to claim all your vat that you have paid for paying for the purchase of goods, all expenses accumulated during the vat qtr pertaining to your business, ie on packaging, stationary etc etc.

    9. marieb is offline

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      #8

      Clarification

      I am starting out in drop shipping and am a bit confused about this. I have been self employed in the UK for some time and didn't become VAT registered. My turnover wasn't enough and I didn't want to, as I would have had to add VAT at 20% to my services - most of whom weren't VAT registered and so they would have been unable to reclaim it, therefore making my services more expensive.

      From the above thread I have the following questions please:

      Do you have to be VAT registered if you are importing into the UK, regardless of turnover? If so, I don't understand how some of the products can be sold on Amazon at the price they are, as if you are VAT registered you have to charge VAT, with then goes to the government...

      When drop shipping, can you ensure that any import costs are paid beforehand, so that the product arrives to your customer without any delays at customs?

      Thank you!

    10. world9563 is offline

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      #9
      You don't have to be VAT registered until you reach the GBP 77,000 threshold.

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