UK Import VAT dangers

UK Import VAT dangers

There are lots of situations where there are UK Import VAT dangers.  Specifically goods are coming into the UK but the import is looked after by someone who is not the owner.  HMRC have woken up to this mismatch and issued a business brief (click) confirming how the rules should be applied and this could be important.

  • In some cases non-UK businesses will now have to register for UK VAT,
  • In other cases claims for input VAT will be cancelled.

The issue arose in relation to toll operators who import and process goods but does not take ownership.  They might distribute the goods but do not resell them, their only supply is of services to the owner of the imported goods.

The toll operators have been acting as ‘importer of record’, paying import VAT to HMRC and having the entry appear on their own C79 import VAT certificate.  They had been reclaiming the import VAT on their VAT returns which HMRC have ruled as being wrong hence announcing the new rules.

In a nutshell from 15 July 2019

all imports will have to be made in the name of the owner so now is the time to get organised and not fall foul of the this new restriction.

If you’re at all unsure of the rules, please give us a call UK Import VAT dangers.  Remember sooner is always better.

Posted in Relief.