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Posted Thu, 06 Jun 2024 10:41:08 GMT by Peter Newman
Hi, I purchased a hobby CNC machine direct from a German manufacturer, and paid the import VAT via an agent (the courier). The machine has developed a fault and needs to be returned to Germany for repair, but how can I ensure I don't pay VAT again, when it's returned? Is this something I need to arrange with the courier (the same one will collect it from me and return it at a later date) or is there a specific process I need to follow? Thank you.
Posted Thu, 06 Jun 2024 13:53:54 GMT by Customs oldtimer
Hi You need to consider a procedure call outward processing which allows you to export goods for repair and return. On return you will only pay taxes on the cost of the repair. If this is free of charge there won’t be anything to pay. As this is a one off you can use ‘ authorisation by declaration’ meaning you need to tell the courier that you want to export under outward processing so they can make the appropriate type of customs declaration. You will need to get a copy/ proof of the export. On reimport ask the German manufacturer to clearly state’ return after repair ‘. If you are able tell the courier as well. Be ready to provide proof of previous export. More details are here
Posted Thu, 06 Jun 2024 18:43:32 GMT by Peter Newman
Hi, I (think I) understand most of that, but how would it work if collection/export/repair/import/delivery is managed by the company in Germany? The company would arrange and pay for the whole process and, I assume, local VAT for the couriers 'service' in Germany, The difficulty my be they may not be able to prove UK VAT has been paid when the item was first delivered, as this payment would have been made by the customer to the shipping agent, before the y would release it for delivery. What I'm probably asking is if that receipt will provide adequate proof VAT has already been paid for the product. Thanks
Posted Fri, 07 Jun 2024 11:16:07 GMT by Customs oldtimer
I am only talking about the UK side . The German authorities are not interested in whether UK VAT is paid or not they are only concerned about their own taxes. I
Posted Fri, 07 Jun 2024 12:39:47 GMT by HMRC Admin 13
Hi Peter
Please contact the imports and exports team using the contact details here: Imports and exports: general enquiries and they should be able to advise you on the relevant import procedures.
Thank you 

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