Import VAT problem

As NETPs, our company was established in October 2023 and registered for VAT starting from the incorporation date. We didn't start to trade until our VAT number arrived. So, we have been in operation for approximately two months. We are on the flat rate scheme and are about to prepare our first return. I think we have managed everything properly by now. However, it seems that there is a problem with our customs financial accounts, and we don't know what to do. 3 packages have been imported from Turkey on different dates in March to check how the importing process works. 2 of them were under £135, and one is above. We have a company in Turkey, and it is the supplier. We are aware that import VAT for these packages should be included in our first VAT return. The problem is that none of our companies have paid import VAT, and we thought that those amounts would be on our March postponed VAT statement. However, there is no postponed import VAT statement but a C79 certificate (declared by FedEx). As far as I know, it should show the import VAT that we already paid. Actually, we haven't paid a penny by now. Will Fedex contact us to pay a bill, or is there something wrong with our tax statements? What should we do in this case?

Any advice would be much appreciated.

If you have C79 ,which is issued by HMRC not FedEx via your government gateway account , then import VAT will have been paid by someone . The likely answer to why you have not been charged import VAT by the courier is that they have invoiced the sender . Check with your supplier whether they have picked up the charges for you. The other answer for the consignments below £135 for business to business sales is that you should account for VAT yourself using the reverse charge mechanism. You will not receive any statements for this . https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk

Hi,

If you have received a C79, then the import has not been declared under postponed VAT accounting. The carrier would have paid the VAT on your behalf so it is likely now that they will charge you for this. The C79 will allow you to recover the import VAT as input tax, subject to the normal input tax rules.

VAT guide (VAT Notice 700)

If you have purchased the goods below a value of £135, please see the guidance here:

Changes to VAT treatment of overseas goods sold to customers from 1 January 2021

Thank you.

Thanks a lot for the advice @Customs oldtimer and @HMRC Admin 2 However, I encountered a problem with the reverse charge mechanism. We have two consignments below £135, and the reverse charge mechanism sends the VAT into Box 2, which does not correspond to our case. I couldn't find a way to send them into Box 1. Showing these charges in Box 2 will cause a problem for us or not?

 

Hi. Box 2 should only be used if your bringing goods in to Northern Ireland  from the EC. You will need to contact your software provider to look in to this . Thank you  .