Timing of vat reclaim on imported items

[Julian Thompson]

When our containers from US/China land I get a vat bill from my freight handler in the UK. I pay the bill and then a few weeks later the C79 arrives from Hmrc.

When to claim the vat? Invoice date from forwarder or C79 date?

[PF62]

Neither - https://www.gov.uk/guidance/imports-and-vat-notice...

8.7 How to use the C79 certificate

The date when the VAT shown on the certificate may be treated as input tax is normally the accounting date alongside each item, not the date when the certificate is issued. So, for example, if your VAT Return period ends 31 October, you may treat as input tax for that period, subject to the normal rules, VAT paid shown on your October certificate (issued 12 November).

[j4ckos mate]

What about getting your own deferment?

[Trailhead]

You can’t reclaim import duty until you have the C79.

[Julian Thompson]

So in the case that the c79 straddles two quarters you’d account for the invoice in q1 and then claim the vat back in q2 when you have the c79?

So how do you account for the “vat” in q1 if it’s not yet vat? T9 non vatable expense?

[Trailhead]

Julian Thompson said:

So in the case that the c79 straddles two quarters you’d account for the invoice in q1 and then claim the vat back in q2 when you have the c79?

So how do you account for the “vat” in q1 if it’s not yet vat? T9 non vatable expense?

Post it as a POA to the supplier ledger.

[PF62]

Julian Thompson said:

So in the case that the c79 straddles two quarters you’d account for the invoice in q1 and then claim the vat back in q2 when you have the c79?

That shouldn't happen.

As I posted before "The date when the VAT shown on the certificate may be treated as input tax is normally the accounting date alongside each item, not the date when the certificate is issued."

So the accounting date should be the same as the invoice date, and can be claimed as input tax based on that date even if it is on the C79 received in the 'next' month - as the VAT notice I linked to says "So, for example, if your VAT Return period ends 31 October, you may treat as input tax for that period, subject to the normal rules, VAT paid shown on your October certificate (issued 12 November)."

[Trailhead]

PF62 said:

Julian Thompson said:

So in the case that the c79 straddles two quarters you’d account for the invoice in q1 and then claim the vat back in q2 when you have the c79?

That shouldn't happen.

As I posted before "The date when the VAT shown on the certificate may be treated as input tax is normally the accounting date alongside each item, not the date when the certificate is issued."

So the accounting date should be the same as the invoice date, and can be claimed as input tax based on that date even if it is on the C79 received in the 'next' month - as the VAT notice I linked to says "So, for example, if your VAT Return period ends 31 October, you may treat as input tax for that period, subject to the normal rules, VAT paid shown on your October certificate (issued 12 November)."

But if you haven’t received the C79 by the time you do the vat return, irrespective of the date on the c79, you can’t reclaim the vat.

[PF62]

Trailhead said:

But if you haven’t received the C79 by the time you do the vat return, irrespective of the date on the c79, you can’t reclaim the vat.

That is only likely if the OP choose to submit their return early, long before the due date.

[Trailhead]

PF62 said:

Trailhead said:

But if you haven’t received the C79 by the time you do the vat return, irrespective of the date on the c79, you can’t reclaim the vat.

That is only likely if the OP choose to submit their return early, long before the due date.

Not necessarily. OP says it takes several weeks to receive the C79, so if his import is towards the end of the quarter he could be caught out.

I wonder how many people just claim back the vat in advance..... probably loads even though it’s incorrect.

[PF62]

Trailhead said:

PF62 said:

Trailhead said:

But if you haven’t received the C79 by the time you do the vat return, irrespective of the date on the c79, you can’t reclaim the vat.

That is only likely if the OP choose to submit their return early, long before the due date.

Not necessarily. OP says it takes several weeks to receive the C79, so if his import is towards the end of the quarter he could be caught out.

It does take several weeks after the end of the month to receive the C79 because HMRC issue them on the 12th of the following month. However that still gives three weeks after receiving it before the return for the previous period which the C79 covers needs to go in.

[Trailhead]

Julian Thompson said:

When our containers from US/China land I get a vat bill from my freight handler in the UK. I pay the bill and then a few weeks later the C79 arrives from Hmrc.

When to claim the vat? Invoice date from forwarder or C79 date?

Op there has been lots of chat, but to answer your question in a directl manner - you reclaim on the date of the C79 and when the C79 is in your possession.

Cheers

[PF62]

Trailhead said:

Op there has been lots of chat, but to answer your question in a directl manner - you reclaim on the date of the C79 and when the C79 is in your possession.

You are slightly mistaken.

You do have to wait for the C79 before being able to reclaim the VAT.

However you do not reclaim "on the date of the C79", but claim based on the accounting date alongside each item on the C79.

This means that you will likely be reclaiming VAT for the quarter based on the C79 received on the 12th of the following month, i.e. quarter 1/7/2018 to 30/09/2018 will likely include the C79s received in August, September, and October.

Edited by PF62 on Thursday 25th October 18:21