Belgian SMEs selling to the UK: customs, VAT and getting paid in pounds

A Kortrijk furniture maker sells to retailers in Leeds and Manchester. Before 2021 a delivery to Leeds was paperwork-light, like one to Lille. Now each shipment needs customs declarations on both sides, an origin statement on the invoice, and a buyer who knows how to handle import VAT. Then the payment arrives in pounds into a euro account, converted at a rate nobody chose.

Customs on both sides

The Belgian company files an export declaration and the UK side files an import declaration. Both need an EORI number: a Belgian one for you, a UK one for your buyer or whoever acts as importer. Most small exporters use a customs broker or a freight forwarder that includes customs in the price.

Rules of origin: the zero-duty step

The EU-UK Trade and Cooperation Agreement removes duty on goods that "originate" in the EU or UK. Furniture made in Kortrijk from EU or UK materials usually qualifies. Goods assembled mostly from Asian components may not.

To claim zero duty, the exporter makes an origin statement, a set wording on the invoice, and keeps evidence that the goods meet the rule for their product code. Without it, the buyer pays the UK's normal duty rate, and a buyer surprised by duty becomes a former buyer.

UK VAT

For B2B shipments, the UK importer usually accounts for import VAT, often using postponed VAT accounting so no cash changes hands at the border. For consumer sales of £135 or less, the seller charges UK VAT at checkout and needs a UK VAT registration. Above £135, VAT is collected at import.

Services are simpler: most services to UK businesses are outside Belgian VAT, and the invoice says so.

Getting paid in pounds

UK businesses pay each other by Faster Payments, which settles in seconds. Asked to pay a euro IBAN, a UK buyer sends an international transfer, its bank converts at its own rate, and the amount arriving in euros rarely matches the invoice to the cent.

Invoicing in pounds with sterling account details on the invoice gives the buyer a domestic payment. You receive the exact amount in pounds and decide when to convert. If you pay UK freight, a UK sales agent or trade shows in pounds, part of it never needs converting.

Paying into Belgium: the local rail

Source: European Payments Council: SEPA Instant Credit Transfer. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

A Rivet business account on the Growth plan gives a Belgian company sterling details for Faster Payments and euro details with an IBAN, both in its own name, plus US dollar details on every plan. Balances can be held, converted at a rate shown before you confirm, or used to pay suppliers in 120+ countries. Rivet is not a bank; regulated partner institutions hold the funds.

For more on the UK side, see postponed VAT accounting and our GBP business account guide.