VAT Help

[smith94]

Hi All,

Quick question to see if I have got this correct.

Considering importing some high end items and have a question about VAT.

This is how I see it, please let me know if I've got the wrong end of the stick.

Import an asset worth £60,000, say.

To release it from customs, I would need to pay VAT @ 20%, which would come to a 'landed' cost of £72,000.

The company would be VAT registered, so I now have £12,000 to reclaim in my next return.

Someone buys the asset I have bought for £80,000 including VAT. This means of the £80,000, £13,333.33 is VAT to pay to HMRC.

Therefore, on my VAT return, it would therefore state that I have £12,000 to reclaim, and £13,333.33 to pay. Leaving the net amount to pay of £1,333.33.

(SIimpified I know as import duty can be involved also)

Is this correct?

Any help appreciated.

Thanks,

Will.

[Eric Mc]

Correct about the VAT amounts. Import duty is not reclaimable.

[Ean218]

And you pay VAT on the duty.

[smith94]

Cheers guys.

Yep, know about import non reclaimable added before VAT applied. Just kept it out to test workings of VAT.

[Ean218]

If you're going to be doing this often you may want to look up the HMRC SIVA scheme for VAT deferment and the possibility of a duty deferment guarantee.

That way you don't have to pay up immediately to clear the goods out of customs. They take the payment on the 15th of the following month which gives you a bit of time to sell the stuff!