I just started looking after a brand new company who are importing goods from China - I have been given a few ''import invoices'' from their Logistics company. All invoices are addressed to the company i look after who are VAT registered. The invoices all show they are for ''Customs VAT and Customs Duty'' ONLY, with both amounts split out.
Can I claim this VAT back and how do I show it?
Im assuming the Customs Duty is just an expense they will have to live with, albeit a direct one.
Hope someone can point me in the right direction.
Thanks
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If the invoice was from DHL charging your company the VAT and duties, then you can claim the VAT, but if the chinese company is simply recharging the duties, then there's nothing to claim - thats how I understand it, at least. If your company want to claim it, DHL should invoice them direct
If I have understood what you have it is an invoice from DHL for import duty, plus the valuation VAT on the products imported.
If this correct, you have to wait until you receive a form C76 from HMRC before you can claim back the VAT. The form will show the amount , and the agents reference which should tie up with your invoice.
The import duty is outside the scope of VAT, so no VAT involved in that.
Hello Bill
Yes the invoice is as you say. Ive just done a bit of digging and seen something about a form C76 - can you advise who actually liaises with HMRC to provide them with the information that will generate the Form 76, in the first place? Would it be the Logistics company or should my Ltd co customer be applying somehow? Do you also - do you know typically how long this process takes?
Thanks
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Wow Bill! I have never heard of this?? Or ever received a C79 from HMRC? Interesting! I am relieved to hear Pauline say its not needed. I have been using the invoices sent by DHL and UPS - I assume this must contain all the necessary info?
A C79 is only issued if DHL is told to put the company's VAT number on the documentation. But it's not required as long as the DHL paperwork is in order (called HMRC about this one a few months ago...)
Hello All
I had a look at Pauline's link (thank you Pauline) which states
''commercial documentation may be accepted to support claims for input tax, provided it provides all the necessary information''
What is interesting is that HMRC do not then go on to define what is commercial documentation (so Im assuming an invoice is acceptable) and what ''provides all the necessary information'' means.
In my case I only have a copy invoice (I do not have access to any of the other import information/documentation - nor do I want to I think!!). I can say the invoice is very clearly addressed to my client by PNC Global Logistics. It also shows some shipping information (Shipper/weight of cargo/arrival date/how many pieces /consignee) - so again Im assuming this is sufficient proof to be able to process the invoice/claim the VAT back.
Princess - thank you for your info too - thats probably saved 45 minutes of my life I wouldnt have got back waiting on hold to HMRC! Very useful info.
Michelle - Now thinking of Bez from the Happy Mondays - made me smile so that cant be bad for a Monday.
PS - does anyone know what do to with C88's and the VAT mentioned on these documents (I have a feeling nothing as these will eventually move to Import invoices of C79s).
Have a great day all
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ive found out a bit more as I had to ring the VAT and Customs helpline about something else - I will post an update on here later tomorrow when I have 5 minutes.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hello All Well here goes - info from my long chat with VAT and Customs yesterday (deep joy!!)
C79 (Import VAT certificate)
You cannot reclaim Import VAT from Freight companies Invoices without an original Form C79 issued in the name of the business. Therefore you cannot use freight/shipping companies invoices nor C88 forms (except in certain circumstances -***see below).
The Form C79 will show that you have paid the import (whereas the VAT showing on a C88 may be challenged/change eg if items are returned to the Exporter) - so THEN you can reclaim the VAT paid on the goods you have imported as Input Tax.
HMRC will post out the C79s to your customer's (VAT address) between 11-14th of each month. If you do not get the C79 by 24th of every month you must apply for copies (see Section 8.11 best by fax as they can take a couple of weeks and could then be delayed so impacting on claiming the VAT back if in the last month of each VAT quarter, although If there is not enough time for you to get a replacement certificate before your VAT return is due, contact your LVO (Local VAT Office) to arrange use of alternative evidence or estimation of input tax. (***see below).
You need to check that the C79 certificate agrees to the total import VAT you were expecting for that period. (by matching it to the original UPS/ Shipping/freight company invoice(s) which should detail the import duty separately).
If any imports are not accounted for on the C79, call the shipper/freight company and ask for details of the import. Get copies of the C88 and check your VAT number is quoted properly as above. See Section 8.14 of the above HMRC Notice about how to deal with missing items and Section 8.13 on how to deal with queries about additional items on the C79 which might not be yours!
*** In the absence of a C79 to evidence payment of VAT, commercial documentation may be accepted to support claims for input tax, provided it provides all the necessary information. This is from Pauline's earlier link http://www.hmrc.gov.uk/manuals/insmanual/ins12705.htm This is meant for use whereby the original imports would never be on a C79 or if the examples and alternative evidence is held which is mentioned in section 8.17 of the above HMRC notice (and MAY be invoices or C88 (Acceptance Advice copies only) if HMRC agree, although you will have to prove you have done all you can to obtain a duplicate C79 or eg if the consignee VAT number was missed from/wrong on the C88 etc.
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What I have not managed to establish fully is what would never be on the C79 in the first place - I have no idea the difference between bulk and simplified C88s nor what a PE33 is!!!!!!!!!!!!!!!!!
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Happy reading and if you understand then if you can supply a translation ........
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Take a look at this link:-
