An EORI number is one of the absolute essentials that you need to complete the import process. Although we’ve many times written about EORI numbers, we realised that we hadn’t actually explained what would happen if you didn’t have one. So we’ve decided to write a post explaining exactly why an EORI is so important and why, when we chase you for it, we really are doing it for your own benefit.
An EORI number is vital when importing your goods. By not having an EORI your goods will not enter the UK.
If you become VAT registered you must get a new VAT EORI number so that you can reclaim your VAT.
How can I apply for an EORI number?
You can apply for an EORI number on the government EORI page, Get an EORI number: Apply for an EORI number – GOV.UK (www.gov.uk)
You will either receive this instantly or within 5 working days (if HMRC needs to check a few details).
It is best for you to do this before the goods land in the UK to avoid the hassle of being chased by the person handling your shipment or incurring storage costs from the port.
However, should your goods land and you don’t have an EORI please apply for one as soon as possible to minimise the cost this will incur.
To apply for an Economic Operators Registration and Identification number (EORI number) you need your:
- Unique Taxpayer Reference (UTR) – find your UTR if you do not know it
- business start date and Standard Industrial Classification (SIC) code – these are in the Companies House register
- Government Gateway user ID and password
- VAT number and effective date of registration (if you’re VAT registered) – these are on your VAT registration certificate
- National Insurance number – if you’re an individual or a sole trader
For a five-minute form, there are a lot of consequences – it’s worth getting this sorted before the goods land!
EORI Numbers and Reclaiming VAT
If you have become VAT registered but have not informed us, not to worry; the fix is simple enough. You will need a new VAT EORI number.
First, you’ll need to apply for VAT registered EORI number here: https://www.gov.uk/eori . Once you have your new VAT EORI number let us know as we will update your Shippo Customer Profile ready for your future imports.
For your previous imports before the point of you being VAT registered, you will not be able to reclaim VAT. However for all imports after you became VAT registered you should be able to. You will need to speak to the PCA Team and using our entry numbers from the C88 documents produced when clearing your goods, you will be able to have the entries of your shipments correctly amended to match your new VAT-registered EORI number. Once finalised with the PCA Team you should be able to reclaim your VAT paid on all past imports valid for a VAT reclaim.
We obviously want to help you avoid situations where you need to contact the PCA team. This can all be avoided by declaring to us your new VAT-registered EORI number on your shipment. Your NON-VAT registered EORI will remain valid unless you contact HMRC EORI’s team via their contact form and ask them to deregister the old EORI. You can contact the EORI Team: https://www.tax.service.gov.uk/shortforms/form/EORIContact.
Alternatively you should be able to update your EORI status using your Government Gateway portal.
C79 Form
Being VAT registered can be daunting, however, the process can be simple. When VAT registered, a C79 form is provided by HMRC so you have evidence of the VAT paid on your imported goods.
Using the C79 form (on/around the 24th of the month following when your goods were clear) within your usual VAT return be it Monthly, Quarterly or otherwise does not allow you to claim back the VAT you have paid which must, in all circumstances, be deductible under the normal input tax rules.
We suggest that when confirming your VAT EORI number, double-check that it is correct here. Using the incorrect EORI can lead to big complications; ultimately the VAT could appear on someone else’s VAT certificate or similarly, you may find someone else’s VAT on your C79 certificate. If you are unsure, you check on your Government Gateway portal.
What Happens Without An Without an EORI?
Without an EORI, your goods physically cannot clear Customs.
An EORI acts like an importing passport; each importer has their own allocated EORI number that they use. It allows the government to monitor and track what you’re importing – and, much like a passport, your goods aren’t getting anywhere without one.
If your goods don’t clear customs, they don’t have the go-ahead to enter the UK market . . . which means that they aren’t allowed to. Customs will hold your goods at the border and that is the furthest that they will be allowed to progress. This means your goods will be sitting there at the border, staring longingly into the distance wishing that they could go home.
It’s non-negotiable. There are no loopholes or alternatives. If you don’t have an EORI number, your goods will not get into the UK.
This also means that you’ve paid for goods that you can’t use.
So, now your goods are stuck and held up at customs . . . what can you do? Your supplier isn’t just going to say “Sure – I’ll have those back and here’s your money!”. You’ll end up being out of pocket without any way to reimburse yourself as you can’t sell your goods because you don’t have them.
Your goods will be stuck in customs storage for longer than the allotted free time – which means that you’re going to be hit with some immense charges.
Consider this: more than 50% of the UK’s food is imported. That’s just food – what about clothing? Furniture? Electronics? Such a large amount of what we use in our day-to-day life – such a large part of what drives the economy – is imported… why are we bringing this up?
Because customs are busy.
There are constantly ships pulling in, products being checked, containers being unloaded, etc. What there isn’t – is an infinite amount of space. To keep everything running smoothly, customs need to have a quick turnover rate – they can’t afford to have containers and late collections cluttering up their warehouses.
What serves as a deterrent to people picking up their goods late?
Storage fees. The storage fees that customs charge can be absolutely extortionate – and, like our customer who got stuck with a £1,000 bill, you don’t want to be eating into your profits.
Contact Shippo
We hope this post was useful!
If you have any questions, please contact us or grab a quote here.
Been using Shippo for couple of years now for importing our goods from China to UK and I can safely say they are a great company. My main contact is usually with Phoebe. Very helpful and always happy to help, on a number of occasions explained things to me and went the extra mile to help get our goods delivered in a good condition on time! I would definitely recommend them to anyone looking for good price and amazing service.Gergo S