VAT on Imports

VAT on Imports

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I have a client who has imported office furniture from Germany. For the purpose of reclaiming VAT. The Client has already paid the VAT in Germany. As per my idea The Import VAT should have been paid when the goods come in UK and VAT should been reclaimed in the next VAT return?

Can still client reclaim the import VAT which is already paid to german importer?

Any advice on the same is highly appreciated.

Thanks

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By Portia Nina Levin
22nd Sep 2014 15:03

They are not imports!

Imports are where goods come into the EU from outside the EU.

When goods move from one EC member state to another, they are acquisitions. What your client should have done is given the German supplier their VAT number, and the German supplier would have then treated the supply as exempt (with the right of recovery).

Your client would then have charged themselves UK VAT and (assuming they are fully taxable) recovered the same amount.

Unless you can get the German supplier to credit the previous invoice and reinvoice without the VAT, you are probably stuffed. You cannot recover non-UK VAT from HMRC that should not have been charged.

What your client should really have done, was engaged an accountant that knew about how VAT works on intra-EU movements of goods, and asked that accountant beforehand.

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By shaun king
22nd Sep 2014 15:22

Not Stuffed yet

Get your client to provide the supplier with their UK VAT number and get them to provide evidence the goods left Germany. The German supplier will then have to credit the MwSt to your client.

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