Non-UK businesses looking to import goods into the United Kingdom must appoint a UK-resident representative to handle customs clearance and import VAT. This requirement is enforced by UK customs regulations, which mandate that importers must present an EORI number linked to UK residency. If this is not possible, the business must engage an indirect representative who will be jointly and severally liable for any customs duties and import VAT.
Types of Customs Representation
There are two main types of customs representation, both requiring official registration with the local tax office:
1. Direct Representation
In this arrangement, the customs representative acts in the name and on behalf of another UK-resident entity. The represented party (the declarant) is fully responsible for all obligations arising from the customs declaration. The declarant must maintain proper records and provide an audit trail. The customs agent is only liable in cases of professional negligence.
2. Indirect Representation – for Non-UK Importers
For non-UK importers, an indirect customs representative must be appointed. In this case, the representative acts in their own name as the import declarant, even though they do not file the customs declaration themselves. However, they must maintain a complete audit trail of the customs process. The indirect representative is jointly and severally liable for all customs duties and import VAT obligations.
Since customs authorities are likely to pursue the indirect representative in cases of underpayment or misdeclaration, it is crucial for the representative to establish strong contractual agreements to safeguard against non-compliance by their clients.
As of June 26, 2024, the Italian Revenue Agency has closed the Brexit Information Desk, which was set up to provide clarifications on the tax effects of the United Kingdom’s exit from the European Union. Therefore, if you need support with your import strategy and import VAT management, we are available to offer personalized consultancy.
Cesca Accounting offer a free introductory service with a tax consultant qualified and experienced to assist businesses Book your free consultation