Import VAT treatment confirmed

The treatment for the deduction of import VAT paid by a taxable person who is not the owner of the relevant goods has been clarified in two situations in Revenue and Customs Brief 2/2019.

HMRC has become aware that some UK toll operators who have paid import VAT on behalf of overseas customers have wrongly claimed a corresponding deduction for input tax under VATA 1994 s 24. The correct procedure is for the owner to be the ‘importer of record’ and reclaim the import VAT under VATA 1994 s 24 (if registered in the UK) or the 13th VAT Directive (86/560/EEC).

The department has also found that some businesses that sell on goods before importing them into the UK so ownership and title passes to the new owner act as ‘importer of record’ on UK import declarations. The correct procedure is for the new owner to be the ‘importer...