EU VAT Regulations under DDP Terms 2021-02-25
2021-02-25
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
SMEs in the UK are facing pressure from clients to supply on a delivered duty paid (DDP) basis, which can be challenging for them. This issue is particularly acute when dealing with EU-based SME clients who do not wish to take on import duties and regulatory burdens.
What steps her Department is taking to assist British small and medium-sized enterprise exporters with EU VAT regulations under delivered duty paid terms?
While VAT in the UK is a matter for the Treasury and in the EU it is the responsibility of member states, my Department provides support through our international trade adviser network. Last week, we held a webinar as part of the UK Export Academy dealing with Incoterms including DDP.
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Assessment & feedback
The specific challenges faced by SMEs when EU clients insist on DDP terms and the difficulties in reclaiming VAT were not directly addressed.
Response accuracy
Q2
Partial Answer
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Context
SMEs, especially those dealing with other SME clients in the EU, are facing difficulties due to the insistence on delivered duty paid (DDP) terms. This leads to issues like reclaiming VAT and regulatory burdens.
Many SMEs have EU clients that are themselves SMEs, which understandably do not wish to be importers and thus take on extra regulatory burdens. Due to the insistence on DDP terms, UK exporters have to try to reclaim EU VAT. I hear what the Minister says about different responsibilities and so on, but in his co-ordinating and supportive role, will he agree to meet me and representatives of the British Promotional Merchandise Association, to hear at first hand the difficulties that its members are having and to explore solutions, even if they are cross-departmental?
In a belated attempt to score some points with Mr Speaker, I will simply say that I would be delighted to do so.
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Assessment & feedback
The specific challenges of reclaiming VAT and the request for a detailed meeting was not directly addressed; instead, the answerer made a light-hearted comment without committing to the specifics asked.
Response accuracy