For cross-border e-commerce sellers, navigating international tax documentation can be daunting. Three key documents—C88, C79, and E2—often cause confusion but are essential for proper tax compliance. Understanding their differences and purposes can prevent costly errors in tax declarations.
C88: The Customs "Bill," Not a Tax Certificate
Contrary to common misconception, the C88 document is not a tax certificate. Officially called the "Customs Import Document" or "EU Single Administrative Document," it serves as a duty payment notice issued by customs after goods inspection and tariff verification.
This document, known as the "Customs C88 Form" in the UK, clearly specifies the payable customs duties. Think of it as an itemized bill stating: "These are the import duties owed for your shipment."
E2: The Actual Tax Certificate
The genuine proof of tax payment comes in the form of the E2 document. When customs clearance agents receive the C88, they pay the specified import duties, after which customs issues the E2 as official payment confirmation.
This document serves as a receipt, verifying that all duties listed on the C88 have been properly settled.
C79: The Monthly Import-Export Ledger
The C79 provides comprehensive monthly records of all import-export activities, including product descriptions, quantities, declared values, paid duties, and import VAT. Crucially, it serves as the primary documentation for claiming import VAT deductions during tax filings.
Essentially, the C79 functions as a detailed transaction statement that enables sellers to recover portions of paid taxes.
Understanding the Document Relationships
The three documents form a complete tax documentation chain:
- C88: Customs' duty assessment notice
- E2: Proof of duty payment
- C79: Comprehensive monthly trade records for VAT deduction
An analogy might help: The C88 is like a restaurant menu listing prices, the E2 is the payment receipt, and the C79 is the detailed dining history used for expense tracking.
Key Differences Between C88 and C79
Sellers should note these critical distinctions:
- Origin: C88 comes from customs clearance agents, while tax authorities send C79 to registered tax representatives
- Purpose: C88 verifies customs duties, whereas C79 supports VAT deduction claims
- Identification: C88 uses EORI numbers, while C79 references VAT registration numbers
The C79's Role in Tax Filing
For UK quarterly tax filings, the C79 serves as the foundation for import VAT calculations and deductions. To ensure accuracy, sellers should provide both C88 and C79 documents to their tax representatives for reconciliation.
Essential Takeaways
- C88 is a duty assessment notice, not a tax certificate
- E2 provides official proof of duty payment
- C79 enables VAT deductions through comprehensive trade records
Mastering these document distinctions helps cross-border sellers maintain tax compliance and avoid unnecessary financial risks.