Revenue & Customs Brief 15 (2020): 'VAT; Conclusion of review of Import VAT deducted as input tax by non-owners', explains the outcome of HMRC's review of its policy on the deduction of import VAT paid by taxable persons that are not the owners of the relevant goods. This is of interest to a non-owner who has reclaimed import VAT on goods imported into the UK and advisers or agents dealing with businesses importing goods to the UK.
The new brief concludes that HMRC's policy, as expressed in R & C Brief 15 (2019) remains correct.
It is the owner, whose details (Economic Operators Registration and Identification number or EORI) should be shown in box 8 of the import declaration, who is eligible to reclaim the import VAT, either in accordance with:
- Section 24 of the Value Added Tax Act 1994 (VATA) (if registered for VAT in the UK).
- Under part XXI of the VAT Regulations 1995 (SI 1995/2518).
HMRC looked at a number of specific examples raised by various businesses and representatives, these included:
- Agents.
- Warehousing.
- Goods temporarily imported for repair.
- Goods imported for onward lease.
- Special procedures.