How do you treat a payment paid on entry into UK for goods coming from a non EC country?
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It is Input tax
Assuming that it has been declared correctly it is just plain Input tax claimed in box 4
C79 form / do NOT claim duty
I most often see payments to HMRC for imported goods to have two elements:
VAT that you can reclaim in the normal way in box 4Duty that can NOT be reclaimed on the VAT return
Evidence of the VAT element will appear on form C79 issued by HMRC.
The duty increases the cost of the goods and is non-recoverable except that it reduces profits and therefore tax on profits is reduced as the profits are reduced.