SPE13230 - Discharge to free circulation: import VAT calculations
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Import VAT is payable on discharge to free circulation. It is based on the value of the discharged goods, inclusive of duty. The VAT rate to be applied is that of the Member State of discharge at the date of discharge (NI ONLY). No account is to be taken of changes in the value of goods following transfer from other IP traders, as this will have been accounted for under the normal VAT rules.
If traders wish to opt to discharge goods based on the tariff classification, customs value, quantity, nature and origin at import, they must request permission to use this.
If the authorisation holder is discharging several items with different duty rates the UK supplier should be asked by the authorisation holder to confirm the value for VAT of the discharged goods at import to that country.
IP goods which are discharged on their sale to a taxable person in another Member State may be eligible for relief from import VAT under ‘onward supply relief’, see:
VAT Notice 702/7: import VAT relief for goods supplied onward to another country in the EC.
The authorisation holder making the discharge may produce a standardised exchange of information using the EU Trader Portal. (see SPE13615) which has already been endorsed by the Customs authority in the first Member State. If the authorisation holder does not have an endorsed standardised exchange of information using the EU Trader Portal, send one to the first Member State to obtain details of the amounts due.
(NI ONLY) Council Regulation (EU) 952/2013, Article 86 (3); Commission Implementing Regulation (EU) 2015/2447, Article 85
Note - Northern Ireland (NI) Customs Authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979