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Where Taxpayers and Advisers Meet

Post-Brexit input VAT

Nonimous
Posts:90
Joined:Thu Jul 16, 2009 12:39 pm
Post-Brexit input VAT

Postby Nonimous » Tue Feb 09, 2021 12:16 pm

Client has bought something from an EU seller who normally only deals with consumers and therefore, I assume, has just treated them the same way.

Client has an invoice which shows an amount, the words 'zero rated export' and then a 20% 'import fee'.
I am assuming that this is actually import VAT and that in view of their usual customer profile the seller has just arranged with the freight forwarder to handle matters at customs and invoiced the client the costs.

Is this sufficient for VAT purposes or do they need to ask for something else?

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Post-Brexit input VAT

Postby robbob » Tue Feb 09, 2021 12:54 pm

Client has an invoice which shows an amount, the words 'zero rated export' and then a 20% 'import fee'.
I am assuming that this is actually import VAT and that in view of their usual customer profile the seller has just arranged with the freight forwarder to handle matters at customs and invoiced the client the costs.

Is this sufficient for VAT purposes or do they need to ask for something else?
I wouldn't presume anything being honest - i could well believe some companies (shippers/sellers) may be levying additional fees approaching 20% just to cover the hassle.
If it is import vat that can be reclaimed you really need explicit confirmation this is the case at the minimum as a starting point - i would presume most imports are defaulting to "postponed vat" in which case i wouldnt expect to the see the 20% vat being billed that often - but as you say if the seller normally deals with individuuals they have probably just ticked the box to say its the customer/importers problem - so you are probably correct in your assumption that the 205 vat has bene billed and paid - but you shouldnt really me making that assumption just in case its not :)


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