Navigating HMRC Queries on DDP Import Tax Responsibilities

Greetings, As the bookkeeper handling VAT reclaim compliance with HMRC, I am facing a query regarding a recent transaction involving goods imported from China under DDP (Delivered Duty Paid) terms. Context: A UK-based company has procured items from a Chinese supplier, and the transaction was conducted under DDP, indicating that the seller should be responsible for all associated duties and taxes. Current Issue: HMRC has raised questions about the absence of recorded customs duties and VAT payments for this shipment. Inquiry: Is it appropriate to reference the DDP terms to explain this discrepancy? Given that DDP places the obligation of paying all import taxes on the seller, the UK company should not need to account for these costs directly. If the seller adhered to their responsibilities under the DDP agreement, then the requisite customs duties and VAT should have been remitted beforehand. Any guidance on how to respond to HMRC regarding this matter would be greatly appreciated. Thank you for your assistance!

Hi hdstockimages Genevieve,
If the Chinese business has imported the goods under these terms then they would have paid the VAT and duties for you.
The freight agent would normally produce paperwork for you with a copy of the import declaration which will show the VAT and Duty.
I would recommend sending this evidence from the freight company and also reference the DDP terms when replying to us.
Thank you.