I have a client who imports from Europe, normally the supplier invoice is zero rated. However, he is buying from Norway, apparently as they are not in the EU they have to charge vat, and we have to reclaim directly from Norway.
I have looked into it, we have to submit a form, original invoice and shipping documents. It also asks for:
a certificate from a public authority confirming that the applicant is engaged in such business
Does anyone know if the certificate of incorporation would be ok?
Hi Chris
As I understand it - not all goods between Norway and the UK are covered by free movement under the Common Transit/EEA/ EFTA rules or whatever its called. So just a quick question - do they pay VAT/importy duty as the goods land in the UK/taken out of a bonded warehouse? Do they get a C79 from HMRC?
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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.
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Its actually the company he is buying from who has said we have to do this, which after looking into it seems correct. He does import quite a bit but is usually zero rated. He buy old PC's, wipes and resells them.
Same here, Chris, mad busy. Better that way I guess.
Just thought I would check as I was expecting there to be a C79 process going on with this one.
The 'applicant is engaged in such business' is the key, as at first I read it as having to prove the nature of the business eg sale of pcs, but then I thought it's more about proof that it's a business. Would like to see the line in context with the rest of the requirements. But on the face of it sounds like the incorp cert would do. Might be worth a dig around the Norwegian tax site to be sure.
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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
7.6 Refunds to foreign taxable persons Foreign businesses that are registered for VAT (through a representative in certain cases) are entitled to deductions for input tax in accordance with the general regulations see above.
Foreign businesses that are not registered for VAT may, subject to certain conditions, be refunded the VAT they pay on the purchase of goods and services in Norway, or on the import of goods into Norway.
Certain conditions are stipulated for such refunds: 1) the foreign business is not obliged to register in Norway; 2) that the purchase is for use in the business that the person carries on abroad; 3) that the business would have been obliged to register for VAT if it had been carried on in Norway; and 4)that the VAT would, in that case, have been deductible.
--------------- No (2) might give you a problem as that indicates it doesn't cover goods for re-sale.
More digging required methinks
-- Edited by Cheshire on Wednesday 28th of September 2016 10:46:42 PM
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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
Trouble is.....if I've read no (2) correctly how will you then be in a position to make future claims if your client is continually importing from Norway from the same supplier.
Also from all my reading this evening I'm still convinced that the import duty and vat is paid on import and the C79 is the route to a reclaim as I suggestd this morning. I think you have what is known as a commercial invoice which is effectively part of the import documentation pack.
Probably worth having a chat with a VAT expert....try Les Howard. You can find his info on here, or if you can find his contact info, let me know and I can get it for you. He usually wanders in here every few days but I've not seen him much in the last couple of weeks.
-- Edited by Cheshire on Wednesday 28th of September 2016 11:10:56 PM
__________________
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
