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Posted Thu, 18 Aug 2022 15:43:58 GMT by James
I am aware of the guidance that "import VAT may only be claimed by the owner of the goods who as importer of record would be entitled to reclaim the import VAT". https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit13300 This also notes that: "When we refer to the owner as having ownership of the goods, this needs to be seen specifically in the VAT context of ownership being ‘the right to dispose of goods as owner’. It is accepted that, as long as the contract of ownership envisages that title will pass at some future date (usually on payment), title does not need to have passed at that earlier point. Typically, contractual arrangements will often allow the ‘owner’ to use and dispose of the goods as they see fit." Is there any HMRC guidance on the position in relation to the import of assets being acquired under hire purchase? Legal title of the asset rests with the lessor, but is expected to pass to the lessee on the payment of a nominal amount at the end of the lease term. If an HP agreement has been entered into before the asset is imported into the UK, which company should be the importer of record into the UK in order that the Import VAT can be recovered? Should this be the lessee, on the basis that it has entered into an agreement whereby it will acquire title at a future date?
Posted Fri, 19 Aug 2022 13:22:44 GMT by HMRC Admin 20
Hi James,

I would suggest to contact the VAT helpline 0300 200 3700, as there a few more questions that would need to be asked, in regards to whom the importer is, where is the leased Co based, who's EORI/VAT number is used on the import documents.

Thank you. 

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