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Posted Wed, 11 Nov 2020 16:02:13 GMT by NR-Nbi
If our uk charity is invoiced by an EU supplier for a 50% down payment on goods in december which will not be shipped until march when the balance is due, what is the tax point for the EC acquisition tax in box 2 of the vat return? If I account for half the vat now how do I account for the vat on import in march? The vat is not recoverable to our charity.
Posted Fri, 13 Nov 2020 12:29:37 GMT by HMRC Admin 4
Hi,
Please refer to paragraphs 3.4 to 3.6 of VAT Notice 725 ‘The single market’ for guidance on the tax point rules for goods supplied to EU Member States.

Paragraph 3.6 establishes that the receipt of a payment in advance of an invoice or delivery does not create a tax point for the intra-EU supply. But the supplier must issue a VAT invoice to their customer for the amount paid to them (see paragraph 16.9) and the date of issue of the VAT invoice will be the tax point.

The single market (VAT Notice 725)
Posted Fri, 13 Nov 2020 12:44:00 GMT by NR-Nbi
Thank you for your response to part of my question . So I pay 50% of the vat based on the receipt of the suppliers invoice in December. What happens in March when vat will be due on the full value of the imported goods at the border?
Posted Wed, 18 Nov 2020 13:04:34 GMT by HMRC Admin 11
Hi,

Given the specific circumstances of your enquiry, please contact the Charities Helpline for further assistance, either by submitting your enquiry online, by phone or webchat:

Charities and Community Amateur Sports Clubs

Thank you. 
Posted Wed, 18 Nov 2020 13:41:07 GMT by NR-Nbi
Thank you for your response, I will do that. However I would not think that we will be the only organisation in this position so perhaps some more specific guidance is in order from HMRC?
Posted Fri, 20 Nov 2020 15:11:04 GMT by HMRC Admin 5
Hello

All relevant guidance and information will be updated and provided to traders and the publice when it is made available. 

Thank You.
Posted Thu, 24 Dec 2020 09:42:38 GMT by NR-Nbi
For anyone following this there was finally some guidance published https://www.gov.uk/guidance/value-added-tax-eu-exit-transitional-provisions?utm_source=dff25cdc-49ec-4b0c-be48-a0eddc3c52fa&utm_medium=email&utm_campaign=govuk-notifications&utm_content=daily

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