Postponed VAT Treatment - Overseas Company

Hi I submit the UK VAT returns for our sister company which is in the Netherlands but has a UK VAT registration. They export material directly from the Netherlands to private individuals in the UK and issue sales invoices to these customers with 20% UK VAT using their UK VAT number. The material is imported and the VAT on import is postponed on clearance and they receive a Postponed VAT Statement. Am I correct in posting the Postponed VAT to boxes 1 & 4 but that there is NO entry in Box 7 for the net amount as they are not purchasing anything ? The material is out of their stock in the Netherlands. The net impact therefore is just the VAT on the customer invoices being collected and payable to HMRC.

Hi,

Please see the reporing requirements below:

Box 1
Include the VAT due in this period on imports accounted for through postponed VAT accounting. You can get this information from your online monthly statement, or you must estimate the amount if you delayed your import declaration and do not have a statement.

Box 4
Include the VAT reclaimed in this period on imports accounted for through postponed VAT accounting. You can get this information form your online monthly statement, or you must estimate the amount if you delayed your import declaration and do not have a statement.

Box 7
Include the total value of all imports of goods in this period, not including any VAT.

Complete your VAT Return to account for import VAT

Thank you.