IMPS03440 - Import entry procedures: postal imports of cut flowers, cuttings and potted plants from the Channel Islands and postal imports of low value goods from Guernsey and Jersey
Customs have special arrangements that allow some overseas traders to charge, collect and pay over to us the import VAT that would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding signed with the overseas countries customs and postal authorities. Traders wanting to use this procedure must be authorised to do so by these authorities. Once authorised, they are issued with a unique authorisation number which should be shown on the customs declaration or packaging. Also they will include the statement ‘Import VAT Pre-paid’. Where these arrangements are used traders will not be charged import VAT or a Royal Mail handling fee when they receive their package.
VAT registered businesses that purchase goods for use in their business should keep the outer wrapper and invoice from the supplier to support their claim for input tax.