RCB/15/20 VAT – Conclusion of review of Import VAT deducted as input tax by non-owners
Revenue & Customs Brief, Issue 15. 2 October 2020
Purpose of this brief
This brief explains the outcome of the review of the policy outlined in Revenue and Customs Brief 2/19, issued in April 2019, which clarified the correct treatment for deduction of import VAT paid by taxable persons that are not the owners of the relevant goods.
Who needs to read this
You should read this brief if you are:
• a non-owner who has reclaimed import VAT on goods imported into the UK
• advisers or agents dealing with businesses importing goods to the UK
Background to this brief
HMRC published Revenue and Customs Brief 2/19 (RCB/2/19) in April 2019. This restated the long-standing policy of who is entitled to reclaim VAT paid on imports under current UK legislation.
Following the publication of Revenue and Customs Brief 2/19 (RCB/2/19) and the end of the transitional period, HMRC and HM Treasury received a number of representations from businesses and business representatives about the application of these rules in specific cases.
This review is now complete and confirms the policy outlined within Revenue and Customs Brief 2/19 is correct.
The policy, as stated in Revenue and Customs Brief 2/19 (RCB/2/19), remains correct.
It is the owner, whose details (EORI) should be shown in box 8 of the import declaration, who is eligible to reclaim the import VAT, either in accordance with:
• section 24 of the Value Added Tax Act 1994 (VATA) (if registered