Just trying to clarify my understanding of import VAT for a VAT Registered client who bought computer equipment to supply as part of his trade.
I am a small part time practice and this is the first time I've had a client buy from outside the UK since Brexit. My questions are:
1. He will pay import VAT at the time it arrives in the UK. Can he reclaim the VAT back on his VAT return? If so, how?
2. If he was to start importing more regularly he should appoint a freight agent and either set up a deferment account or use Postponed Import VAT Reporting?
3. Under a deferment account the goods are released but HMRC deducts the VAT 45 days later by direct debit. Like question one above, can he reclaim this back?
4. Under Postponed Reporting, payment is made to HMRC and he accounts for the import tax in both Box 1 and Box 4.
Thank yoo very much for sticking with me.