VAT for buy product from china

#1

Hi everybody,

My UK-based company does not have a VAT registration yet. I buy products on alibaba and do fba. Is there anything I missed about VAT related to customs procedures?

Or am I doing it right by sending ddp the products I buy from China?

#2

Do you live in UK?

#3

Be aware with DDP products being sourced from Alibaba there are some scams out there where the seller will undervalue the goods on the customs declaration or even mark it as a gift in order to avoid paying any duty at all.

Unfortunately some sellers on Alibaba can not be trusted at all.

#4

I am an authorized seller of a Chinese brand. I cannot terminate my cooperation with China. What do you suggest I do in this case?

#5

Do you live in UK?

#6

No i am not living in UK

#7

In that case you should be VAT registered as a NETP

#8

I don’t live in UK. I have a LTD company in the UK. Do I need to have a VAT registration to have products sent to fba warehouses from another country to the UK?

#9

Yes you do

#10

So far, I have sent products to amazon UK warehouses many times without my VAT registration. What will happen?

#11

You’ll need to register, backdate it and pay vat owed and fines

#12

Are you sure about this because my accountant didn’t say anything.

#13

https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg37150

#14

Perhaps you also need a new accountant…

#15

The company opened in October and has had a turnover of about £36,000 so far. The punishment scared me according to what you said. Will I encounter a serious figure?

#16

You were advertising in Sept 2021 ?!

#17

Enough to contact HMRC today?

How many of these “Help, I don’t want to pay tax!” threads have there been lately?

It’s getting to the point where it really should be a ban on new seller accounts that aren’t a UK Ltd Company, with mandatory VAT registration.

It wouldn’t stop all of the problems, but at least it’d be more auditable.

#18

Or an honest one?