Commentary

RCB/2/19 VAT—import VAT deducted as input tax by non-owners

Part V16 Forms and other HMRC material

RCB/2/19 VAT—import VAT deducted as input tax by non-owners

RCB/2/19 VAT—import VAT deducted as input tax by non-owners

Revenue & Customs Brief, Issue 2. 11 April 2019

1 Purpose

This brief explains the correct treatment for the deduction of import VAT paid by a taxable person who is not the owner of the relevant goods.

The legislative basis for input tax recovery are set out in sections 24, 25, and 26 of VATA 1994. The VAT Input Tax guidance has been updated to give details on the correct procedure for deduction of import VAT and can be found in VIT31100 - import VAT – Deduction of Input tax.

Section 4 of this brief also explains what actions HMRC will take in relation to incorrect claims for previous periods.

2 Readership

You should read this brief if you are:

  1.  

    •     a non-owner who has reclaimed import VAT on goods imported into the UK

  2.  

    •     a 'toll operator'

  3.  

    •     advisers or agents dealing with businesses importing goods to the UK

3 Background

HMRC is aware of incorrect treatment by businesses whereby import VAT has been incorrectly deducted as input tax by non-owners of the goods. This can present itself in two ways.

3.1 Toll operators

Toll operators all operate a similar

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