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HMRC Guidelines on Who Can Reclaim
Import VAT?
Normally, you can claim input VAT on any goods imported if they are for business use and
you claim it on your VAT Return of the concerned accounting period. Businesses registered
for VAT can use postponed VAT accounting from January 2021. Any UK business importing
goods for businesses from anywhere in the world can use this scheme to account for import
VAT. If you import non-controlled goods from EU to Britain between January 2021 and June
2021 then you have to use postponed VAT accounting.
1. Defer your supplementary customs declaration or
2. Use simplified customs declarations process where authorised and make an entry in
declarants records.
A new policy has been released by HMRC on the appropriate steps for the deduction on VAT
while importing goods into UK. Those who are not the actual owners of the goods they
import will be affected by the new policy.
Sometimes import VAT is reclaimed by those who do not own the goods at the point of
import. For example, toll operators. They pay the import VAT on behalf of the overseas
owners and reclaim import VAT though they do not own the goods at any stage.

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Under the new guidance, only those who are the owners at the time of import can reclaim
import. Now the correct procedure will be that the owner of the goods becomes the
importer and register for UK VAT or take 13 to VAT Directive to reclaim as appropriate.
From 15 July 2019, claims for import VAT will be allowed only using the correct procedures.
Non-owners who claimed VAT before 15 July may not be pursued by HMRC as it accepts
that the previous guidance was not clear on the correct procedures especially when the
error seems genuine or due to misinterpretation of guidance and there has not been any
other person claiming the VAT deductions.
To sum up
You can reclaim the VAT paid on the goods you have imported. To reclaim import tax, you
need the import VAT certificate (form C79). This is proof that you have paid the import VAT.
It has to be reclaimed by the owner only if the imported goods are to be used for business
purposes. So if you are an agent you cannot reclaim import VAT.
In case of a mistake, has it been claimed by some else? If not and if HMRC is satisfied that
the supply was made to you, you can still reclaim the input VAT even if the invoice is
wrongly addressed.
If you incurred VAT on goods that you still have on hand but were imported before you
register for VAT, you can go back up to 4 years and claim the input.
Exempt goods or services are supplies that you can’t charge VAT on and so can’t reclaim.
You should record the transaction in your general business accounts.
Doshi Outsourcing helps small and medium-sized business in preparing and filing their VAT
Returns. For any query contact our VAT experts today.
For More Information Visit us
http://www.doshioutsourcing.com