Pre registration VAT - Import VAT paid on FA'S

Didn't find your answer?

Hi All

Does anyone know if import VAT paid on fixed assets purchased prior to VAT registration can be reclaimed now the client is VAT registered? The assets are still owned and used by the business and were purchased within 4 years of registration date.

HMRC have raised a query on the VAT return already submitted and are now checking with their "technical dept" if it can??!! Reading the various relevant VAT notices there is no mention of import VAT specifically, only fixed assets.

Any help appreciated.

 

Replies (6)

Please login or register to join the discussion.

chips_at_mattersey
By Les Howard
23rd Jan 2017 14:12

Input tax is recoverable, see Regulation 111(1)(a) & (b).

Thanks (1)
paddle steamer
By DJKL
23rd Jan 2017 14:23

Is your use of "import duty" in para 2 a typo?, do you mean "import vat"?

Thanks (0)
Replying to DJKL:
avatar
By VP
23rd Jan 2017 14:32

yes typo. I have edited the OP now. Thanks

Thanks (0)
avatar
By shaun king
23rd Jan 2017 15:22

The answer is yes providing that you show evidence that the VAT in question was paid on the importation.

Thanks (1)
Replying to shaun king:
avatar
By VP
23rd Jan 2017 15:55

Thanks Shaun King. Is there a VAT notice or something like that i can refer the VAT people to as they are being rather unhelpful and awkward.
My client can prove he has paid the VAT to the shipping agent who has the evidence that they paid the import VAT on my clients behalf. The VAT office who raised the query had requested C79 certificates, i informed them we do not have them, they told me to request them by fax and it would 2 to 3 weeks. I then asked would the VAT office issue them if my client was not VAT registered at the time of the transactions, which then lead to the original query of if this import VAT was reclaimable at all.

Thanks (0)
chips_at_mattersey
By Les Howard
24th Jan 2017 16:07

There is material about the C79 in HMRC Notice 702, chapter 8.
Pre-registration input tax is in Notice 700, chapter 11.
The more nuanced comments are years of experience lodged in Shaun's and my brains!

Thanks (1)