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Posted Fri, 07 Jul 2023 22:24:54 GMT by Sunil Makim
I am importing goods from south america,The Company there insists i pay local VAT, which i cannot claim back. On the UK Import entry , do i use only the net value to pay Taxes liable or do i have to include the local VAT paid as part of the cost ? Goods are MIB usual value £ 15000 pounds .
Posted Mon, 10 Jul 2023 14:22:17 GMT by newtocustoms
It is strange that the shipper adds VAT on an export invoice to begin with. I would exclude the local VAT from the import declaration. On the invoice it has to be clearly stated what is the value of the goods and what is the VAT that was added.
Posted Mon, 10 Jul 2023 19:59:05 GMT by Customs oldtimer
As far as I am aware normal valuation rules apply even with mib Extract from HMRC valuation guidance: Export duty and taxes paid in the country of origin or export When these taxes are incurred by the buyer, they are liable to duty. If you benefit from tax relief or repayment of these taxes, you may leave them out of the customs value.
Posted Tue, 11 Jul 2023 15:28:46 GMT by Sunil Makim
Thank you both, the importer is VAT Registered using PVA, so I guess leaving out the VAT Charged by seller is ok in this case.

Feedback no question .
Posted Wed, 12 Jul 2023 08:42:18 GMT by Customs oldtimer
Whether the importer is VAT registered or not or whether they are using PVA has no impact on the value that should be declared. Normal customs value rules should still be applied . If they are using PVA The increased value will not however impact the importers cash flow only the amounts declared on their VAT return . You haven’t mentioned import duty so I assume the product is zero rated. It is also worth exploring if there is any option for reclaiming the VAT incurred in South America- there may be some sort of VAT export scheme.
Posted Thu, 13 Jul 2023 14:08:10 GMT by HMRC Admin 8
Please contact our Customers Team:
Imports and exports: general enquiries
Thank you.

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