Hi, I am hoping that someone can clarify something for me.
It is probably a silly question but........
I understand that goods purchased outside of the UK are subject to import tax and duty in the UK and providing you have the relevant C79 form, you can claim this back as input tax but my questions is: What if the foreign supplier charges you vat on the goods you have purchased, how do you log this invoice? Do you put the full cost in the books as a purchase and ignore the VAT element?
If the above is correct, would it therefore be classed as zero rated?
If you are VAT registered in the UK, and your supplier is in the EU, then you should not be charged VAT. But you need to provide your UK VAT number. You then use the Acquisition Tax procedure, to account for UK VAT.
If you are not registered for VAT, then you have to pay the VAT as part of the cost of the goods.
Hi Guest ?? Could do with a name adding to your signature section.
You can only claim the import VAT once you are in receipt of an original C79 sheet.
If the US exporter has added VAT you need to query this. Although I wonder if this is down to the INCO terms and them paying all charges to your clients warehouse door (DDP) rather than to the dockside for example? Although this would be rare, especially for a small business unless of course they have paid for this service 100% upfront.
Or are you meaning that the freight company have added import VAT and duty to their invoice, which needs to be paid before release of the goods to your client? If so - let me know which software you are using and I can tell you how to process it. (NB I might be a bit quiet on a response for a few days as bombed before Christmas, but will come back to you asap)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
