Commentary

V3.358 Imports—remission/repayment of import VAT

Part V3 Supplies, acquisitions and imports

V3.358 Imports—remission/repayment of import VAT

V3.358 Imports—remission/repayment of import VAT

This paragraph looks at the circumstances under which import VAT may be repaid or remitted including where import VAT is overcharged, goods are defective, there is an error by the customs authorities or other exceptional circumstances apply.

Archived Regulation (EU) No 952/2013, arts 116–123 (formerly archived Regulation (EEC) No 2913/92, arts 235–242) provide for remission of duty and VAT. The regulations are applied to VAT by virtue of VATA 1994, s 16(1).

Circumstances under which import VAT may be repaid or remitted

Import VAT may be repaid or remitted in respect of:

  1.  

    •     overcharged amounts of import VAT1 (ie duties were paid that were not legally due2)

  2.  

    •     defective goods or goods not complying with the terms of the contract3 (ie the imported goods are rejected because they are damaged or defective, or not in accordance with contract4)

  3.  

    •     just and equity5 (ie the debt results from circumstances that put a business in an exceptional situation compared to other operators in the same business)6

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