is there a deadline to claim the VAT?

[maysani]

Dear All,
I am, new to this forum and would highly appreciate a help with the below issue.

I helped a university friend who is in charged of many projects in the Middle East in April 2009. I order air conditioning spare parts from a U.K manufacturer who was unable to ship the good directly to the Middle East, they can only despatch the good to a
U.K address which was my house. Consequently, I found a shipping company based in the U.K who quoted a price (£700) to ship the spare parts to the Middle East as well as claiming the VAT (£1800) back and refunded it to me as long as I pay for the good and the invoice addressed to them (i.e. their name appear in the invoice not mine). I agreed and paid approximately £12K (including VAT) to the manufacture and £700 to the shipping company. The good were dispatched to the middle ease in May 2009 and the shipping company promised to submit the VAT claim in August 2009 and I should get my £1800 back by the end of September 2009. Up to now, the shipping company have not return my VAT, claiming that they are unable to summit the claim form due to so many excuses such as; the VAT office has changed the claim from paper to on line, their accountant is still working to get the book in order and so on and so forth. All those excuses are recorded in a chain of emails (more then hundred) I exchanged with the shipping company the start of this deal (April 2009) up to date. I spoke the managing director of the company last week who promised me that he will return the VAT once his accountant get the paper in order and submit the VAT form online. My question, is there a deadline to claim the VAT, the shipping company managing director assured me that there is not which I find it very hard to believe. Also is there a way I can find out whether or not they claimed the VAT.

[Generix]

Ok this just comes down to a matter of fact as far as I can see. (I might add at this point I've just had a fair bit of red wine, so my interpretation of what you wrote could be wayyyyyyy off )

The supplier supplied goods to a UK address, in order to zero rate the supply the goods must have been removed from the UK to the middle east within three months, therefore if this was the case you should be able to provide the supplier with evidence that the goods were removed from the UK within the time limits and therefore they should refund any amount taken as VAT as the supply was a zero rated supply.

Not sure what the bit about the shipping company being the invoiced party is all about, sounds wrong to me?

Will re-read tomo after I've settled into work ;p

[maysani]

Many thanks for the reply and sorry for the confusion.
• The suppliers is Trane (UK) limited who dispatched the good to me in the U.K.
• I sent them a cheque for £12K (the value of the good) including the VAT which was approximately £1800.
• The good arrived to my house on the 20th Of April 2009 and was picked up two day later by the shipping company and arrived to Iraq on 21 of May 2009
• The shipping company is actually an import and Export Company registered in the UK. I paid them £700 to ship the spare parts to Iraq as well as claim the VAT and return it to me as one deal.
• The shipping company had fulfil first part of the agreement i.e. shipped the spare part to Iraq.
• But they fail to refund the VAT giving me the reasons I mentioned in my first post every time I contact them which I find very hard to believe

My questions are:-
• Can I approach Trane (UK) limited now and claim the VAT myself?
• What do I need to provide? I still have the evidence that I paid them, however, all other document in the in name of the shipping company such as airways bill and the good invoice.
• How can I find out whether or not the shipping company clime the VAT
• To be frank my patience is running out as I have been trying very hard to get my VAT since May 2009 and all I get is empty promises from the shipping company.

[Generix]

I am assuming you are not VAT registered as a sole trader;

If so you (or the shipping company on your behalf) should simply write to the supplier and provide them with the relevant evidence, i.e. the bill of lading showing the goods to be removed to Iraq, and request they correct their original invoice which was treated as standard rated, and then

There is no VAT to be recovered by you or the shipping company from HMRC, it is the supplier you must get to correct their invoice as it was incorrectly invoiced at the standard rate.

The supplier may ask that they be given time to recover said amount from HMRC which they will have overpaid themselves - which in my eyes is a reasonable request, this should take no more than 3 months. If they are completely satisified with your evidence then they may refund you the VAT immediately though.


So in answer to your questions:

(1) Yes, providing you have the evidence, e.g. contract with shipping company, bill from shipping comany, copy of bill of lading etc.
(2) See (1)
(3) You can't, however unless the suplpier invoice was made to the shipping company then I can't see how they could legitametly do this (even if the invoice was in their name it would be incorrect)
(4) Time limit for your suppliers correction to a VAT return is 4 years, they are unlikely to refund you the VAT if you haven't provided them with the evidence in this time, and moreover would leave them out of pocket...so time is running out...

[maysani]

Dear all,
I had further contact with Tran U.K and asked them to re issue a correct invoice to me. They asked me to send them some of the emails that I have been exchanged with the shipping company and the initial quote from the shipping company which list the services they promised to deliver for the fee they charged, see the list below. Unfortunately, this was Tran reply “We are unable to advise or assist with VAT concerning another company or HM Customs payments?.”


What legal ground I have to find out whether or not the shipping company has claimed the VAT (I believe they have from the way they trying to avoid answering my queries).

Can I take them to small claim court (demanding VAT of £1749.00) based on the below list of service


List of the services promised by the shipping company.

1 ) If you want the Spare Parts to be Delivered to your Home Address , then you have to pay TRANE the delivery Charge of £75.00 , our forwarding Agent will collect from your House.

2 ) You can Pay Trane Direct , but you must instruct them to
a - Make their Invoice Address to " XXXXXXXXXXXXX LTD.," at the Address given previously.
b- Delivery to be made to your Home Address so you can Inspect the Parts before dispatch.


3 ) We shall make the necessary Export Documents , Insurance , Airway Bill & arrange the Custom clearance in Kuwait & transportation to Iraq.

4 ) For the above service you only have to pay us £ 589.00 Pound Sterling

5) The VAT of £1749.00 will be Refunded to you as soon as we Receive the Payment ( In September ) from HM Customs.

[Generix]

If there was an export sale from supplier to you then there should be no VAT charged.

If the sale was made by supplier to shipping company and then shipping company to you, then the shipping company should still not be charging you VAT as an export still exists.

The suppliers issue with any input VAT is their own.

Seems you have chosen an incompetent or fraudulent shipper? This should be very basic stuff for an international freight business....