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Case study

Import VAT Recovered for a German DDP Wholesaler

GBP 100,000 back, and the set-up that made it possible

Sometimes the first sign that something is wrong comes from a customer. That is how this one started, and it ended with a six-figure recovery and a business that now runs smoothly.

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In short: a German wholesaler selling into the UK on DDP terms discovered, years in, that it should have been UK VAT registered since 1 January 2021. We put the whole position right: backdated registration, penalties reduced to zero, retrospective re-invoicing so the VAT did not fall on the business, and GBP 100,000 of import VAT recovered.

The situation

A German wholesaler had been selling into the UK on DDP (Delivered Duty Paid) Incoterms® for several years. One of its UK customers got in touch to ask why it had not been charged UK VAT.

When the UK left the EU, with effect from 1 January 2021, the simplifications that had meant the business did not need to be UK VAT registered stopped applying. So, without realising it, the business had had a UK VAT registration obligation since that date, and a growing exposure.

What we did

We took it from a worrying phone call to a fully resolved position. We helped the client to:

  • register for UK VAT on a backdated basis, and obtain a VAT-linked GB EORI number;
  • deal with the potential late-registration penalties, which we successfully mitigated to zero;
  • re-invoice its UK customers retrospectively with valid UK VAT invoices, including drafting an explanatory email to customers, so the UK VAT did not become a cost to the business;
  • review and correct its UK import declarations, recovering import VAT already paid at the border and identifying overpaid duty;
  • work with its UK customs agent so that ongoing imports were reported correctly and postponed VAT accounting was applied, including changing the layout of its commercial invoices and drafting the PVA instructions to the agent.

The result

  • GBP 100,000 of import VAT recovered.
  • Late-registration penalties reduced to zero.
  • UK VAT correctly charged and recovered going forward, with the customs side running cleanly.
  • A business that no longer has to think about its UK position: it simply works.
Amanda Bowles

Author: Amanda Bowles (VAT).

Last updated: 15 September 2026.

Reading time: about 3 minutes.

This is a real, de-identified client example. Figures are the client’s own; names and identifying details are withheld under the firm’s confidentiality policy.

Could this be you?

If you sell into the UK on DDP terms and you are not certain the UK side was set up correctly, a short review usually tells you quickly where you stand, and whether there is money to recover. See correcting past UK VAT and import errors, or contact our team.

Amanda Bowles

Amanda Bowles

Senior Manager

VAT

amanda.bowles@tuerner.com
+44 (0) 1636 526 075

Michelle Lawrence

Associate Director

VAT

michelle.lawrence@tuerner.com
+44 (0) 1636 526 075

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