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Posted Tue, 16 Apr 2024 08:49:57 GMT by L M
Hello, I wonder if you could help me, please. We are a customs agent whose customer is bringing goods from China, CIF Felixstowe. We have asked a freight forwarder to arrange transport of the goods from the port to the UK place of destination, Oldbury (UK transport only, not end-to-end movement, not customs clearance or port charges). As this is an LCL shipment, the container will be devanned in Ipswich before delivery to Oldbury. The freight forwarder has raised an invoice for UK transport with 20% standard VAT rate. Is this correct? Should it not be 0%, based on VAT Notice 744B, since the UK transport is related to an import? https://www.gov.uk/guidance/vat-on-freight-transport-and-associated-services-notice-744b The forwarder argues that 0%-rating can only be applied to end-to-end imports that include UK transport. Or does Ipswich count as the first destination (0%-rated transport to there), then 20% for transport from Ipswich to Oldbury...? Any help would be greatly appreciated, many thanks in advance.
Posted Fri, 19 Apr 2024 09:45:36 GMT by HMRC Admin 2
Hi,

You can find guidance in VAT Notice 744B, section 5.

Freight transport and associated services (VAT Notice 744B)

Thank you.

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