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LisaB


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Import from Norway and VAT
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Hello Everyone

I have spent all morning trying to get through to the HMRC VAT helpline to no avail and was wondering if any of you could help me!

My client has imported some goods for resale in the region of £2500 from Norway.  The Norwegian supplier has not included any tax on the invoice.  However, my client has VAT certificate from the importers for £100 which has been paid from my client's bank.  I have looked on the HMRC website and various other sources and I am confused as how to treat this import on the VAT return?  Also can my client reclaim the £100 from the importers?  Is there any other documentation that I/or my client needs to complete?

Any guidance would be much appreciated!

Lisa

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BackOfficeGroup


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Lisa

I'm a little confused. You say your client is the importer but then they paid £100 to the importer for VAT, which seems odd to me.

VAT would not be payable as the goods have come from the EU. The rules changed at the beginning of the year in respect of imports etc and I have no idea what the new rules are. You may have to do some reverse charging...

But I think the first question re the importer is of some importance.

P

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Shamus


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Hi Lisa,

are you sure that this is VAT and not import duty?

If import duty it is not recoverable as VAT and should instead be allocated against the cost of the goods (part of the expense of bringing the goods to their present location and condition).

If it is VAT it is still not recoverable in this instance though as Norway is not part of the EU so the amount should still be added to cost rather than allocated to VAT.

Where VAT is recoverable (For countries within the EU) you will have received form C79 from the importer giving the amount of VAT but such will not be the case in this instance.

Hope that this helps,

Shaun.

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Shaun

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Shamus


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Hi Phillip,

that one almost got me as well.

Norways not in the EU!

Shaun.



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Shaun

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LisaB


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Just spoken to client - she has a VAT certificate from the transporters and not the supplier of the goods who are based and registered in the UK - not sure if that makes sense?



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Shamus


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Sounds like VAT on services for customs clearance, storage and transportation rather than on the actual goods to me. If that's the case then it's not part of the cost of the goods and should be allowable.

You need to see this certificate yourself to determine what exactly it is. If she faxes you a copy at least then you would be able to contact the transporters directly to get confirmation.

Shaun.


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Shaun

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LisaB


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Thanks for that Shaun - that's what I'll do.

Thanks everyone!

Lisa

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semsley


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You do get VAT certificates on imports from countries outside the EU from the carriers, I have a client who buys things from NZ and we get these.  Can't remember what the form is called but it is very official all green and yellow and I think has watermark and seal - I'm not at the client till next month so can't confirm all detail till them but you can claim this VAT back and use the certificate for the proof.

-- Edited by semsley on Friday 22nd of January 2010 06:34:27 PM

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Advice from beyond the grave!!!

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LisaB


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Thank you Semsley, I have requested the client send me a copy of the VAT certificate.

Thank you everyone for your help :)

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Amanda


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Hi Lisa,

I have a client who imports and I think the certificate that you require your client to fax to you is a C79 from HMRC. It should have somewhere across the top

~H.M. CUSTOMS ANd EXCISE MONTHLY VAT CERTIFICATE.

Hope that helps. Sounds like that might be the one.

A

-- Edited by Amanda on Friday 22nd of January 2010 09:56:57 PM

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Amanda
Shamus


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Hi Amanda,

Isn't C79 is only for countries within the EU?

I did suggest C79 earlier but with the proviso that it probably wouldn't be available in this instance as Norway isn't in the EU.

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Amanda


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Hi Shaun,

Do you know you have got me thinking about whether its for Countries in the EU or not, I would have to go through my paperwork to have a look properly. My client the C79 gets issued for when stuff is imported and its say delivered by DHS for example, so sometimes there is VAt on the DHS invoice and sometimes import duty as well. The two are listed separately in the invoice.

Anyway Lisa sorry if its duff info (not sure) but like I said in previous posting he must fax or e-mail you a copy just to make sure.

cheers
A


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Amanda
Wella


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With my track record on VAT I was reluctant to enter into this but I have found this on HMRC, regarding imports from non EU countries

This link takes you to the help page

http://www.hmrc.gov.uk/vat/managing/international/imports/importing.htm#2

...and this quote is lift from the page under the heading

VAT on imports of goods from non-EU countries

You can reclaim the VAT paid on the goods you have imported as input tax. You will need the import VAT certificate, form C79, to show that you have paid the import VAT. A shipping or forwarding agent cannot usually reclaim this input tax because the goods were not imported to be used in part of their business.

This is just an extract and there is more info on the page.
Hope this helps

Bill



-- Edited by Wella on Saturday 23rd of January 2010 12:42:42 PM

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BackOfficeGroup


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Oops, thats my geography down the pan!! My brain is not working this week...

Lisa, you still state that the supplier is in the UK, I'm just a little confused at to why your client would have the import docs as they are not the importer? Just something I think nees clarifying - did they agree to pay for transport costs?? Who is your client paying for the goods?

or am I missing something (highly likely lol)

P

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Shamus


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Evening Phillip,

your geography's fine. It's just that Norways a bit of an anomaly.... As was Greenland in the opposite direction but at least they had the decency to simplify matters by leaving the EU.

I think that they try to keep that one quiet in Brussels just in case anybody else tries to escape!

Guess who's been helping their son with his homework!!!

Shaun.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
LisaB


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Apologies everyone - I think I was using the wrong terminology.  The VAT certificate is from the carrier of the goods and not the supplier and is an allowable expense.

Problems solved!

Thanks everyone for all your help - I love this forum!!  :)

Lisa B



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