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Posted Mon, 20 Dec 2021 16:00:10 GMT by NR-Nbi
As a charity vat is not a recoverable cost, we are also experiencing a very high error rate re our zero rated imports being charged vat at 20% in error. When we raise the issue the below is a typical response. Please clarify how should these errors be corrected? "We regret the shipment has been cleared incorrectly however unfortunately, HM Revenue & Customs will not amend any VAT entries, where the item has cleared against a GB VAT number; this is regardless of who was at fault for the clearance error. You would need to claim the VAT back on your next VAT return We trust that this clarifies the matter for you. However, if you should have any further queries, please do not hesitate to contact us. Kind Regards Clearance Dispute Broker FedEx Express"
Posted Tue, 21 Dec 2021 08:41:29 GMT by HMRC Admin 17

Hi,
 
I am sorry to hear that you are having issues with the incorrect vat being charged at import.

If you are a vat regiastered charity then the error would be corrected by recovering the vat on your next vat return and
you will receive a vat C79 certificate as evidence to claim this vat back as input tax.

If you are not vat registered then the vat would be claimable via completion of a c285 form found on our website;

Welcome to GOV.UK  .

This would be if the goods have come in via freight or Fed Express.

However you should not be having to pay vat on goods where they are not liable to vat at 20% so the most important aspect is
getting the import correctly done at the border.

This would involve making sure that the commodity code is correct for the item and also makng sure that if you are entitled to zero rated goods on the basis of you being a charity then this information is clearly given to the freight operator ,thus allowing the freight operator to charge at the appropriate rate of vat.

Please see the following information:


Pay no import duties and VAT on goods for charity   .

Thank you.
Posted Tue, 21 Dec 2021 09:24:42 GMT by NR-Nbi
I am confused by your answer, perhaps you could clarify further? The imports have all the correct information/paperwork and should be VAT zero rated for import under VAT schedule 8 group 15 (notice 701/6). Despite this errors are being made with the import declarations which I have no control over and only find out when I get the documents from the shipper. I am then raising the issue with them, and receive the response above. The vat is related to non-business activities of the charity and as such is not usually recoverable even if it is on the c79. Does the import error somehow make the vat recoverable? and if so what evidence is required for this? Once this error is made what is the correct way to correct it please?
Posted Tue, 21 Dec 2021 14:23:59 GMT by HMRC Admin 30
Hi

The import error does make the VAT recoverable if the VAT has been charged incorrectly, as it is the only way you can recover the VAT which shouldn't have been charged to you.

The imports are all dealt with by freight agents so, it is important for them to input the correct reliefs at the time of import so that the VAT is not charged.

However if the VAT is charged at import incorrectly then the way to recover this VAT would be via your VAT return.

Thank you. 

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