BREXIT and how it will impact our European customers

With effect from 1st January 2021, the UK will no longer operate under EU open market rules.

What is the impact of BREXIT?

With effect from 1st January 2021, the UK will no longer operate under EU open market rules. We will move to trading based on a new Free Trade Agreement (FCA).

All goods delivered outside of the United Kingdom will be treated as an export of goods and zero-rate for UK VAT purposes. VAT however will be due in the destination country.

A Trade and Cooperation Agreement (TCA) has been agreed between the UK and the EU.  Under this Agreement, goods of UK or EU origin will be given a preferential tariff rate of zero %. A certificate of origin for our product which is wholly UK manufactured will be supplied on our commercial invoice.

 

Who pays VAT? And are any further taxes due?

Supplies made to Europe will be subject to the rate of VAT applicable in the destination country. The VAT due is the responsibilty of the customer who has placed the order and  needs to be paid before the goods can be cleared through customs.

Goods of UK or EU origin will attract 0% tariffs under the new trade agreement.

 

 

How is the VAT calculated? Are there any other charges?

A copy of the commercial invoice for your order will be supplied to the delivery agent. The invoice will contain all information required for customs clearance into the recipient country, including the Certificate of Origin and Harmonised Code for the product.

VAT will be raised at the rate prevailing in the local country and is based on the commercial value of the goods including delivery costs.

The freight agent will also raise local charges associated with clearance of the goods for example a disbursement fee for collection and payment of VAT to the tax authorites. They will also raise an admin fee for the additional paperwork. As these charges may vary from country to country we are unable to provide exact details.

How will the VAT and charges be paid?

We are required to supply the delivery agent with your personal contact details as given on the purchase order. Please ensure you supply accurate contact details to prevent any clearance delays. The delivery agent will contact you to collect the amounts due. Please DO NOT DELAY paying the amounts due as otherwise the freight agent will raise additonal bonded warehouse storage fees.

What are your Terms of Trade?

Our Terms of Trade for BtoC are “DAP” – delivered at Named Place.

Omersa is responsible for arranging collection and delivery of the goods by our nominated carrier. Risk of ownership passes to the purchaser at the point of delivery.

Omersa IS NOT responsible for any charges relating to Duty, Taxes and Customs Clearance. Any delays in paying amounts due may also result in storage charges for which the customer is responsible.

Will the UK VAT paid on my outstanding order be refunded?

For on line orders placed and not fulfilled before the 31st December 2020, we will refund the UK VAT paid to the credit card used for the original purchase. This process will be completed at the beginning of January 2021.

How is my order insured under DAP?

The cost of delivery includes insurance at a set rate per kilo. The rate will not cover the full value of our product. Should you require full insurance for your order, please contact us so we may provide a quote.