HI sellers,
I have a sale which is valued above 135 pounds and in this instance, Etsy as the marketplace did not collect VAT. This is my first encountering this what should i do?
How can I now send the dress over to my buyer in UK (Glasgow) without any hiccups? I have been reading so much and I thought I should register for a HMRC acc. I clicked on the setup link on the UK Gov page and brought to this page where i have to enter my name, but the National Security Number and UK postal code got me really puzzled. How can we as overseas sellers set up any account in this case?? I do not have National Security Number nor a local postal code to continue.
The HMRC is really like something for UK residents / citizens to use for their tax related issues but it wont apply to me residing in Singapore and just selling occasionally to someone in UK. I read if i do not register then the customer will have issues receiving the dress and the parcel might be rejected and returned back to me at additional costs. I am using normal courier service with tracking which they will be likely using Royal Mail when in UK (not Express like DHL FedEx)
The UK has a free trade agreement with Singapore, as far as I am aware you just fill out the customs forms, add the value and details on there.
If there is any tax to be paid the customer will be notified before the item is delivered to pay these fees. Customers tend to be aware of this when ordering from abroad. (if they have not been charged at check out)
Hi CryzalisDesigns
Thanks so much for your kind reply. I am also not sure where to find custom forms. I only have the Etsy invoice printed out and hope to find out exactly what should I do and where to provide the info.
Who are you using in Singapore to send the parcel with?
When you order your label, you should receive a customs page or form at the same time to fill out.
As the order is not over 600GBP you will not need a vat number, just leave those parts blank.
Fill in the sections about the product, value, weight, commodities code and where the item was produced and you can add the invoice number on the Etsy receipt order.
Then print a copy of the Etsy order receipt and add this to the forms and put them in a clear packing slip on your parcel with the label
I am using this platform called Easyparcel which is like a third party reseller of mailing services across many providers. We select based on the prices they show us. On Easyparcel it also states that "Value-Added Tax (VAT) will be applicable for all shipments to UK. For shipment value up to GBP135, you’re advised to register and provide the EORI number HERE. Extra charges may be imposed by courier without EORI number. More info: https://blog.easyparcel.com/sg/updates-new-vat-requirement-before-shipping-to-united-kingdom/."
They don't seem to have a form for us to fill out tax related issues but simply just say that this is the rule, have a look and register. In this instance, I think heading to my local Post service seems a safer bet as they will be able to advise me better what should I fill up.
You local postal service will be able to help you and clarify.
For future orders maybe look at signing up to companies such as DHL directly and see what their prices are and compare them with your local postal services.
EORI number is not required until you go over 600 GBP, your customer will be charged duties for orders over 135, but most will be aware of this.
Note that when you are shipping to the UK, goods with a value exceeding £600 must clear UK Customs through a valid UK VAT/ EORI number. These shipments will be held by the customs if there is no record on the file or any indication of such on the invoice.