What is Import VAT and what is C79 Certificate?

As a result of the departure of Great Britain from the European Union, the rules for commercial transactions between islanders and taxpayers from EU countries have changed dramatically, and today we will discuss changes in the field of value-added tax on the import of goods. We will also suggest what a C79 certification is and how to obtain it.

In order to simplify the rules for commercial transactions between entities registered in individual EU countries, the legislator introduced the concepts of the supply of goods within the community (the supply of goods within the community) and the acquisition of goods within the community (the acquisition within the community of goods), which takes place without the need to pay customs duties and value tax. added. Due to the fact that the UK has left society, easier delivery rules no longer apply to entrepreneurs who import and export goods from the UK. At present, deliveries from the UK and UK are treated as exports and imports, respectively.

Do you import goods to the UK?

From 1 January 2021, goods imported into the UK (GB) and goods entering Northern Ireland (NI) from the EU are no longer considered as intra-community purchases of goods, but as imports. This results in the need to submit customs declarations and pay customs duties (the amount depends on the type of imported goods, the country of origin and their value) and includes the need to pay the value added tax on import.

What is import VAT?

Import VAT is a tax payable on goods purchased in another country and is usually paid at the border. Duties are usually charged at the same rate as used in your country, in the case of Great Britain, a 20% import tax will be charged on most goods imported into the UK.

ImportanceImport VAT is not only calculated on the cost of purchasing goods. You pay VAT on all costs associated with the purchase and delivery of goods to the UK. In practice, it looks like this:

VAT on taxable imports = 20% of ([Koszt zakupu towaru] + [Cło brytyjskie] + [Koszt wysyłki i ubezpieczenia])

If you are importing goods into the UK and are registered for VAT, you must pay the import VAT (or use the VAT-deferred option for VAT). However, you can apply for an input tax refund. To do this, you will need a C79 certificate.

What is C79 certification?

C79 Certificate (Value Added Tax Import Certificate) is the document issued by HMRC as proof of VAT on imports paid in the previous month. It is generated with your EORI number. If you are the owner of the goods and are eligible for a VAT refund, you will use C79 as evidence of your input tax refund. The certificate consists of two double-sided A4 sheets and is issued in connection with most import procedures, as well as after import corrections and removal from the customs warehouse.

Here is an example C79 . style

The original certificate or equivalent issued by the customs department is the main evidence for claiming the input tax deduction. You may copy and distribute it as needed for internal accounting purposes.

How do you get C79 certification?

C79 certificates are issued monthly, around the 24th of the following month, after the month you paid VAT on the import. The method of obtaining a VAT certificate depends on how you declare customs for the imported goods.

Statements made by the President

If you have submitted your declaration through CHIEF (Customs Handling for Import and Export Freight), you will receive Certificate C79 in the mail. The C79 certificate is sent to the company’s address listed on the VAT return.

Declarations made using the customs declaration service

If you apply using the customs declaration service, you will need to obtain a certificate online (more documents will be available monthly). To do this, you will need the government portal user ID and password associated with your EORI number. If you don’t have a user ID, you can create one.

When will you not receive a C79 despite importing goods into the UK?

The necessity to pay customs duties and import VAT for goods from the EU has significantly increased the costs of companies transporting goods from the EU until now, exempt from customs duties and VAT. To facilitate corporate financial flows, Great Britain introduced the so-called deferral of VAT on imports, that is, the possibility of settling VAT on imports when the return is submitted, without having to pay VAT when the goods are transported. If you use deferred VAT and do not pay VAT at the border, you will not get C79.