Just started my AAT VAT module, and remember an incident from when VAT went up from 17.5% to 20%, and would like to know whether I or Royal Mail were right.
If a customer (i.e. me) ordered goods from a company outside the EU, at which point payment was made and goods dispatched. The item is posted to the customer. On arrival into the country postal system, Royal Mail send a notice to customer that custom, import VAT & handling fee is payable before release of goods.
Is the tax point for VAT calculation the date
of payment,
of dispatch from supplier,
arrival into country and Royal Mail issuance of VAT due,
some other date?
Reference to some kind of official information would be nice if possible. Thanks.
"Customs Duty. If you're ordering or buying goods from outside the EU, any Customs Duty must be paid by the recipient once the goods have arrived in the UK but before the goods are delivered."
Looks like a strange situation to me, I think the supplier would charge 17.5% on the sale because payment was received prior to the vat rate change. But the post office are correct to charge 20% because the service wasn't performed or paid for until after the rate change.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
