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Forwarding Agent - Lost Stock - HMRC 79 Import VAT

As a Forwarding Agent, what is the process that should be followed for lost stock in relation to VAT

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Hi All,


Hope you are all doing well.


Question about an Forwarding Agent accounting for an Importer of Goods into the UK.


The Forwarding Agent operates a duty deferment scheme, defering payment of duty and VAT on the agents behalf.


In most situations, all HMRC C79 certificates are issued with the Importers VAT number.


However, in the case of lost or damaged stock, HMRC C79 certificates are issued with the Forwarding Agents VAT number.


My understanding is that the Forwarding Agent will not collect any direct debit of duty or VAT from the Importer (the Forwarding Agent being responsible for the lost or damaged stock). I believe the HMRC C79 certificate allows the agent to reclaim the VAT, but will suffer the duty as a loss in their P&L.


For the VAT element - the payment to HMRC as part of the duty deferment scheme (sitting on a debtor account uncollected from the Importer) will be written off to the VAT liability account to recover from HMRC with the HMRC C79 certificate as evidence to support the claim.


For the duty element, this gets written off to the P&L.


I believe the above is correct, however can find precious little specific guidance on Forwarding Agent accounting in relation to duty deferment schemes, specifically in the case of lost or damaged stock.


Any advice / links to guidance would be greatly appreciated!


Kind regards,



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