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Posted Mon, 07 Oct 2024 16:49:20 GMT by Joanne Henshaw
We have received an invoice from our supplier for goods imported on our behalf (i.e our supplier was therefore the importer of the goods). I have today received an invoice from them and they have itemised the customs clearance fee and charged VAT on it. Is this correct for should this fee be zero rated. Not sure if it counts as a service in which case VAT would be charged. Many Thanks
Posted Tue, 15 Oct 2024 07:42:03 GMT by HMRC Admin 19 Response
Hi,
The customs clearance fee would normally be charged at the zero rate from the shipping agent to the impoter as it is a service relating to an import of goods. However if the importer has itemised the charge separately and is recharging this fee then the liability of this would be 20%. You can see guidance here:
Supplies made by or through agents: other situations
VAT: costs or disbursements passed to customers
Thank you.

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