Hello all - I am an occasional bookkeeper, but have an ongoing situation related to my former life as a peanut importer which I simply do not understand.
In September 2015 I imported 25 tonnes of raw peanuts for animal feed - this is not a value-added product, and no duty is payable. The import agent had all the documentation, yet for reasons only they understand, they declared the cargo as 25 tons of peanut confectionery, payed HMRC and sent me an invoice for around £5000 which included fees for payments they had made on my behalf. HMRC sent me a certificate in support of the VAT paid on 25 Mt of peanut confectionery.
One year on and I have had to intervene with HMRC on behalf of the import agent to state that yes - they had used the wrong tariff code and the duty should be repaid. HMRC has repaid the agent, which has in turn issued me a credit note. They are now demanding repayment of the invoice representing the VAT on the incorrectly declared goods. I am unclear on whether I am in fact liable for this invoice given that I feel uneasy submitting a vat return to HMRC including this certificate for goods which I know have not been imported.
Any advice on where I stand? Will I be committing a fraud if I submit this VAT return?
Look forward to your thoughts
Replies (4)
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If the only problem were that you are having to repay VAT which you should not have been charged, then that is fine; you refund it, and make an adjustment on your Return.
But you also stated that the goods were not even imported! Perhaps you will clarify this point!
It must be Friday or something, because I'm confused.
Your agent imported goods, and raised an invoice to you - including VAT? And you paid that invoice, including the VAT? And you recovered that VAT on your VAT return?
It has now been established that VAT should not have been charged on the goods. And the agent has issued you with a credit note? Have they refunded to you the VAT that they incorrectly charged you? I fail to understand how they can be pursuing you for an amount that you have already paid them and which you should never have paid in the first place.