What should I do if the vendor declare less value to customs than it should be when importing?

Question

I mainly do importing and exporting. I got a problem from some vendors outside of EU. When they shipped the goods to me through courier companies who will pay the importing VAT on my behalf, the value of goods in the document with shipment is very lower than what I paid to them. That means they send me an invoice when I paid on wich the amount is genuine. But when they sent the goods, they used another invoice with lower amount. What I concern is what should I do with importing VAT? I don't intend to evade of VAT. For me, I hope the can declare the true value. But the venders didn't for their reasons. The goods had been paid less VAT than they should when they came in UK. I think I can claim back the importing VAT as input VAT even I paid more.So the more I paid, the more I can claim back. This don't make a difference. But will this make me smuggler? What is the best solution for me?

Answer 1

I would talk to your accountant about this! And do it before you get audited by the tax man!

It may cost you for your accountant to sort it out - but much less than if the tax man says you are being a naughty boy (even if you are not doing it deliberately!)

Answer 2

Firstly you would be correct to assume that it is your responsibility and not the vendors to correctly declare the value of the imported goods to customs, but due to the way the importing process works you would not actually be able to do that yourself due to the practicalities of the importing process.

You can declare the correct amount to customs. I would suggest you contact the Customs National Advice Service (0845 010 9000) and speak to their international trade/importing section (rather than their vat section) and they will be able to advise you.

As the the vendors, it may be best asking to ask them to put the correct amount down or send them a purchase order/email with your requirements on, or not use them in the future (to save the added paperwork).


Please note - If you declare this to Customs they will not penalise you. At this point there is not much point involving an accountant who will probably know little more than yourself and charge you a fortune.

Answer 3

Customs and Excise are not known for their restraint in dealing with these types of matters. You have to maintain a set of VAT books and customs usually audit these from time to time. I would make a full disclosure either personally or through my accountant. As to the Vendors as they do this on your behalf ask them not to do you a 'favour' in future.

Answer 4

The fuels would desire to be the dazzling cv. If no longer the engine will behave inconsistently and the petrol providers would desire to pay the penalty as happened these days with Tesco garages. high quality controls inspectors can do instantaneous exams.

Answer 5

Talk to Customs and Excise, they can be very helpfull

Answer 6

It's the vendors problem not yours don't worry about it!

Answer 7

report cause if your caught you will be in trouble