Trading Places?

Trading Places?

VAT and Customs Treatment of Imports, Exports, Intra-EU Transactions, and Cross -border supplies of Services in the Digital Age

Trading Places? VAT and Customs Treatment of Imports, Exports, Intra-EU Transactions, and Cross -border Supplies of Services in the Digital Age introduces the main concepts and trade facilitation reliefs that businesses must understand if they are to trade internationally with the least intervention and disruption from the Tax Authorities.  The worst-case scenario is for an importer to have their goods still within Customs’ control, instead of being where they are needed because the correct procedures have not been followed.  Allied to this is the need for businesses to secure the release of their goods paying as little import duty and import VAT as possible.  Whilst import VAT is recoverable by most businesses it is still a major cash-flow cost, which has to be funded. Import duty is an absolute cost so importers must review all available means to reduce or remove the duty payable.

The book highlights the means of importing goods and arriving at the Customs value on which import duty and import VAT are computed.  It also provides commentary on export procedures and the VAT treatment of intra-EU trading, including potential fiscal barriers to exploiting non-UK markets. 

This second edition introduces the myriad rules concerning intangible services and the taxation of downloaded digitised products.  Whilst the rules can be said to be easy to follow, as ever with VAT understanding the exact nature of the service, how it is provided, and where it is consumed are all fundamental problems to be grappled with. 

It also covers the Union Customs Code, which came into effect on 1 May 2016. 

Chapters on potential pitfalls and planning for international trade provide the reader with an overview of ‘Best-practice’ when looking to import or export goods or when setting out to supply services internationally.

Category: Europe, Tax
Series: VAT Guides

Trading Places? VAT and Customs Treatment of Imports, Exports, Intra-EU Transactions, and Cross -border Supplies of Services in the Digital Age introduces the main concepts and trade facilitation reliefs that businesses must understand if they are to trade internationally with the least intervention and disruption from the Tax Authorities. The worst-case scenario is for an importer to have their goods still within Customs’ control, instead of being where they are needed because the correct procedures have not been followed. Allied to this is the need for businesses to utilise all available reliefs to minimise the amount of duty and import VAT payable - whilst import VAT is recoverable by most businesses it is still a major cash-flow cost, which has to be funded, whereas customs duty is an absolute cost. The book highlights the means of importing goods and arriving at the Customs value on which import duty and import VAT are computed. It also provides commentary on export procedures and the VAT treatment of intra-EU trading, including potential fiscal barriers to exploiting non-UK markets.

This second edition introduces the myriad rules concerning intangible services and the taxation of downloaded digitised products. Whilst the rules can be said to be easy to follow, as ever with VAT understanding the exact nature of the service, how it is provided, and where it is consumed are all fundamental problems to be grappled with.

It also covers the Union Customs Code, which came into effect on 1 May 2016.

 

Chapters on potential pitfalls and planning for international trade provide the reader with an overview of ‘Best-practice’ when looking to import or export goods or when setting out to supply services internationally.

Andrew Rimmer is a vastly experienced VAT and Indirect Tax Consultant, with over 40 years’ experience of the subject matter. Andrew established his own company in order to advise all sizes and types of business and entrepreneurs on VAT and Indirect Tax matters. Andrew was previously employed by large professional services’ practices and began his career with H M Customs & Excise.

Trading Places? VAT and Customs Treatment of Imports, Exports, Intra-EU Transactions, and Cross -border Supplies of Services in the Digital Age introduces the main concepts and trade facilitation reliefs that businesses must understand if they are to trade internationally with the least intervention and disruption from the Tax Authorities.  The worst-case scenario is for an importer to have their goods still within Customs’ control, instead of being where they are needed because the correct procedures have not been followed.  Allied to this is the need for businesses to secure the release of their goods paying as little import duty and import VAT as possible.  Whilst import VAT is recoverable by most businesses it is still a major cash-flow cost, which has to be funded. Import duty is an absolute cost so importers must review all available means to reduce or remove the duty payable.

The book highlights the means of importing goods and arriving at the Customs value on which import duty and import VAT are computed.  It also provides commentary on export procedures and the VAT treatment of intra-EU trading, including potential fiscal barriers to exploiting non-UK markets. 

This second edition introduces the myriad rules concerning intangible services and the taxation of downloaded digitised products.  Whilst the rules can be said to be easy to follow, as ever with VAT understanding the exact nature of the service, how it is provided, and where it is consumed are all fundamental problems to be grappled with. 

It also covers the Union Customs Code, which came into effect on 1 May 2016. 

Chapters on potential pitfalls and planning for international trade provide the reader with an overview of ‘Best-practice’ when looking to import or export goods or when setting out to supply services internationally.

Contents

1                   Introduction

1.1         Purpose of this book

1.2         ‘EU’ not ‘EC’

1.3         The complexities

1.4         Future of VAT in the EU

1.5         Definitions and meanings

1.6         The Extent of the “Territories” of the EU

2                   Imports

2.1         Background

2.2         Imports and “Acquisitions”

2.3         Import VAT

2.4         Importer’s responsibilities and “EORI” numbers

2.5         “Authorised Economic Operator” status

2.6         Import duty and import VAT deferment

2.7         “Simplified Import VAT Accounting” (SIVA)

2.8         Importation methods

2.9         Import procedures

2.10       Community/common transit procedures

2.11       Suspending or delaying import charges

2.12       The Customs debt

3                   Reliefs from import duty

3.1         Inward Processing Relief (IPR)

3.2         Processing Under Customs Control (PCC)

3.3         End-Use Relief

3.4         Returned Goods Relief (RGR)

3.5         Goods transferred to other Member States

3.6         Outward Processing Relief (OPR)

3.7         Rejected imports

3.8         Temporary admission

4                   Valuation – valuing the goods for customs ad valorem duty

4.1         Method 1 – the transaction value

4.2         Additions to the transaction value

4.3         Items that can be excluded from the transaction value

4.4         Method 2 – the value of identical goods

4.5         Method 3 – the value of similar goods

4.6         Method 4 – the selling price of the goods in the EU

4.7         Method 5 – the cost of producing the goods

4.8         Method 6 – the “fall-back” method

4.9         Simplified Procedure Values (SPVs)

4.10       Frozen meat in “round sets”

4.11       Value of goods imported free of charge

4.12       Value of imported “replacement” free of charge goods

4.13       Value of used goods

4.14       Goods used after purchase and before entry into the EU

4.15       Valuing rented or leased goods

4.16       All Methods – additional considerations

4.17       Valuation declarations and statements

4.18       “Season Ticket” valuation statements

4.19       Valuation rules for other Customs procedures

4.20       Imported replacement products

4.21       Special VAT valuation rules for Customs Suspensive arrangements

4.22       Valuation rules for trade statistics

5                   Import duty and import VAT reliefs

5.1         Aircraft ground and security equipment

5.2         Animals for scientific research – Notice 365

5.3         Antiques – Notice 362

5.4         Blood grouping, tissue typing and therapeutic substances – Notice 369

5.5         Capital goods– Notice 343

5.6         Chemical and biological substances for research – Notice 366

5.7         Commercial samples – Notice 372

5.8         Decorations and awards – Notice 364

5.9         Donated medical equipment – Notice 341

5.10       Duty and VAT-free allowances

5.11       Food and plants

5.12       Gold

5.13       Goods for disabled persons – Notice 371

5.14       Electricity and natural gas

5.15       Fuel, animal fodder and feeding stuffs, and packing for use during transportation

5.16       Goods imported for onward dispatch to another Member State – Notice 702/7

5.17       Goods for use by a charity – Notice 317

5.18       Goods for test – Notice 374

5.19       Goods related to war graves

5.20       Inherited goods – Notice 368

5.21       Miscellaneous documents and other related articles – Notice 342

5.22       Museum and gallery exhibits – Notice 361

5.23       Sailing “pleasure craft“ to the EU – Notice 8

5.24       Scientific instruments – Notice 340

5.25       International science projects

5.26       Private gifts (postal packages) – Notice 143

5.27       Returned Goods Relief (RGR) ‒ Notice 236

5.28       Visiting forces – Notice 431

5.29       Visitors to the UK – Notice 3

5.30       Visual and auditory materials – Notice 373

5.31       Zero-rated articles including printed matter

6                   Accounting for import duty and import VAT

6.1         Determining the VAT amount due

6.2         Amendments to Declarations and of the sums due to HMRC

6.3         Postal Imports

6.4         Unregistered importers

6.5         Duty Deferment

6.6         Recovery of import VAT

6.7         Goods imported into the UK by a third country/territory supplier

7                   Remission of import duty and import VAT

7.1         Goods “not in accordance with contract”

7.2         Goods imported in “special situations” – import duty and import VAT

7.3         Offences

8                   Exports

8.1         Background

8.2         Types of export

8.3         Customs procedures relating to exports of goods

8.4         Community Transit and the New Computerised Transit System (NCTS)

8.5         The Transport International Routiers (TIR) procedure

8.6         Admission Temporarie – Temporary Admission (ATA) Carnet

8.7         Excise goods

8.8         European Community export preferences

8.9         Proof of export

8.10       Evidence of export under New Computerised Transit System

8.11       Goods exported via another Member State

8.12       Ports or airports without access to NES

8.13       Goods exported to the Channel Islands

8.14       Particular types of export – proof required

8.15       Time limits for exporting the goods and for obtaining proof of export

8.16       “Time of supply” and “tax point” for exports

8.17       Particular types of exports

8.18       Trade Associations and contact details

9                   Intra-EU Transactions

9.1         Background

9.2         Introduction to cross-border movements

9.3         Dispatches

9.4         “B2C” supplies and “Distance Selling”

9.5         “New Means of Transport“

9.6         Acquiring NMTs in the UK – unregistered persons

9.7         Arrivals and Acquisitions

9.8         Transfer of an entity’s own goods to another Member State

9.9         Temporary movement of goods

9.10       Goods for installation or assembly in another Member State

9.11       Goods removed for process or repair

9.12       “Triangulation“ and “Chain Transactions”

9.13       Supplies to diplomats, “international organisations” etc.

9.14       “Call-off” stocks

9.15       “Consignment” stocks

9.16       Excise goods

9.17       Goods removed under “sale or return” arrangements

9.18       Goods sold on “intra-EU transport”

9.19       Samples

9.20       Goods sent for testing

9.21       Record-keeping requirements

9.22       Tables of VAT liabilities for Intra-EU movements

10                Recovery of VAT “Cross-Border”

10.1       Introduction

10.2       EU Scheme

10.3       Non-EU scheme

11                Intra-EU Transactions – Supplies of Services

11.1       Introduction

11.2       The General Rules

11.3       “Mini One Stop Shop” or “VAT MOSS” schemes

11.4       Specific exception for ‘B2C’ “intellectual-type” services and other “intangibles”

11.5       “Emissions Allowances”

11.6       Agency services (“intermediary services”)

11.7       Valuations services and “work on goods”

12                Tax invoices, Reverse Charge and Reverse Charge EC Sales Lists

12.1       Introduction

12.2       Sales

12.3       Purchases or “imported services”

13                “Best Practice” and Planning

13.1       Imports

13.2       Exports

13.3       Arrivals

13.4       Dispatches

13.5       International services

13.6       Summary

Appendix A:         Terms of Trade

Using the correct “Incoterms®”

Appendix B: Useful addresses

Glossary

Index

Imprint
Spiramus Press
Publisher
Spiramus Press
Language
English
Product Format
PDF
Dimensions
234 x 156
Publication Date
28 Apr 2016
Number of Pages
440
ISBN
9781910151334
Edition
2
Product Format
Book
Dimensions
234 x 156
Publication Date
6 May 2016
Number of Pages
440
ISBN
9781910151327
Edition
2