VAT PVA NOT OFFERED BY DPD

VAT PVA NOT OFFERED BY DPD

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Has anyone encountered any other parcel operators not offering the new Post Vat Accounting system - DPD know nothing about it , its a deferment account or nothing. We dont mind the old route of claiming back on the C79 , but their figure work is all wrong for the vat figures and I cant get a break down  from them - our goods are on hold and we cant get  anywhere with them.

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chips_at_mattersey
By Les Howard
26th Jan 2021 09:45

DPD don't offer PVA. It is a HMRC scheme, to whom you should apply. Jason Croke gave you a clear explanation on this a few days ago.

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VAT
By Jason Croke
26th Jan 2021 09:52

I'm sure DPD do know what PVA is, but they may have chosen not to offer it as an option to customers. DHL and FedEx do offer it, so there are other offerings out there, not forgetting the many hundreds of smaller, local freight agents.

You should be able to request a breakdown of the customs duties/VAT you have incurred, remember, DPD are only inputting the details on the paperwork given to them by the supplier, so if the commodity code is wrong, if the rules of origin certificate indicate the goods are not of EU origin then DPD are just going to input that into the customs system and that generates the duty/VAT figure, so unless DPD have made a key stroke error, the issue is likely with whoever arranged the shipping.

If your goods are stuck, then why not pay the money that DPD is requesting, release the goods and then you can always challenge/query the amounts afterwards.....are you sure the VAT is wrong? Remember, import duty may still be due despite the "Brexit deal".

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Replying to Jason Croke:
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By Wilmo3
26th Jan 2021 11:10

I have been trying a whole week to get the breakdown, ping-pong from one department to another. Im certain the vat is wrong - the commodity code etc are nil duty , and all relevant paperwork available. So I agree I believe that input error has been made by DPD. why would they not offer PVA?, having looked at other options like the deferment account - this seems very complicated, we are only a micro organisation and the goods we import have not duty applied to them.

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Replying to Wilmo3:
VAT
By Jason Croke
26th Jan 2021 11:32

I don't know why they don't offer PVA, perhaps it is too difficult for them administratively/IT systems. It might be they just want to deal with using their own deferment account (extra admin fees) or deferment account as these are the two traditional ways of dealing with duty/VAT.

Deferment account does requires an application process to HMRC and if under £10k deferred, does not require a bank guarantee but will require you to send copies of accounts to HMRC for them to judge the credit risk. it may seem complicated but once set up then it works like clockwork....it depends on whether you can absorb the cost of admin fee each time from DPD for using their own deferment account, if you only import small amounts occasionally, not worth a deferment account and just pay the freight agent.

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Replying to Jason Croke:
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By Wilmo3
26th Jan 2021 14:55

Many thanks for your insight on this - I appreciate it. I think the deferment account <£10k is the way to go as we are increasing our imports substantially . Im finding the application form CCG1F really difficult to follow - Our organisation is a partnership and of course have an Income/Expenditure Account, Im quite happy for them to have copies of our accounts for the for the last 5 years , I just dont know how to fill this form in - I have tried ringing them for the last 3 days,no answer. Another quick question - Must I have special software to have this deferment account? - or it it just the case if we get approved we authorise our courier with C1207N form with our DAN number? thank you again

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Replying to Wilmo3:
VAT
By Jason Croke
26th Jan 2021 15:26

You don't need special software, think of the deferment account as an I.O.U. to HMRC, and yes, once approved you will be given a deferment account number and you quote that number to the freight agent, freight agent will then ensure the import duty/VAT is assigned to your deferment account, HMRC will check that the account number is valid and goods are released without payment, HMRC then draw that down via direct debit at same time issuing the C79 import certificate which is your proof of input tax so you can reclaim it.

An yes, authorise the freight agent using C1207N to use your deferment account, this is a bit like a 64-8 agent authority your accountant will get you to sign when you first sign up with them, the 64-8 allow an accountant to file and interact with HMRC with your permission.

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RLI
By lionofludesch
26th Jan 2021 10:16

DPD are hopeless. They deliver a parcel a day to our house but nothing ever arrives.

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