Import Tax Issues under DDP Terms with no import customs duties and import VAT

Hi, i am the bookkeeper and deal with the VAT reclaim compliance from HMRC. Background: A UK company has purchased goods from China, with the terms of delivery being DDP. Situation: Now the UK tax authority is inquiring why no customs duties and import VAT have been paid. Question: Can I use the DDP term to explain this situation?Under DDP terms, the seller is responsible for paying all import duties and taxes, so the importer (i.e., the UK company) typically does not need to handle these costs directly. If the seller has fulfilled their obligations under the DDP terms correctly, then the customs duties and import VAT should have already been paid by the seller.

Hi. If goods are imported from overseas to the UK then import VAT would be due. Import duty may also be charged depending on the nature of the goods Please see below: Trade Tariff: look up commodity codes, duty and VAT rates If the incoterm used for the import requires the exporter of the goods to pay the import taxes then this would be detailed on the import paperwork from the shipping agent. If you are the importer of record then you should have received paperwork from the shipping agent which should detail this information .

Thank you .