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  • RE: Tax position for a replacement under warrantee

    Hi HMRC Admin 25 Thanks, I did (when I realised this method would take a while) - their advice is posted above. Although I did miss something - they mentioned as a private individual (not a company) dealing in essentially low value goods the proof on the invoice (if it had been caught by DHL and which they admitted they missed) should have been sufficient. Thanks Robert
  • RE: Tax position for a replacement under warrantee

    Having called HMRC directly about this since I posted the question they have confirmed my assessment that I did not owe any duty on a replacement under warranty where the original item had been returned for repair was correct on the basis that: 1. I returned the original (faulty) item 2. I had already paid the full duty and VAT on the item when it was first imported 3. The 'replacement' item was in essence a repair since the fault on the original item was not one that could actually be repaired 4. As it was replaced under a warranty and there was no additional costs incurred there was nothing for and additional VAT to attach to.
  • Tax position for a replacement under warrantee

    Hello, I am a private individual that purchased an item from the EU on which I paid full import duties and VAT but which I subsequently realised was faulty. I therefore returned the item to manufacturer who determined that the fault could not be repaired and instead sent me a replacement under warrantee (i.e. there were no additional charges for the repair or the replacement item and I no longer own the original item since I sent it back). I am currently in a debate with DHL as to whether I owe VAT on the replacement based on the fact that they initially missed the fact that this was a replacement under warrantee and treated the item as if I had purchased it new. My reading of the rules is that a replacement under warrantee does not attract VAT (since to charge this would essentially mean I have been double taxed VAT since I paid it the first time around and, as I sent the faulty item back I am in no way in possession of anything but the original good that I bought). Having clarified with the manufacturer that they had made an error, DHL initially accepted this and released the goods to me but there accounts team have continued to insist I owe the VAT - please could someone help me with this as the rules are not 100% clear to me and it seems unbelievable to me that I owe VAT two times on essentially the same good (I could understand it attracting VAT if I had kept the faulty item and simply been sent a replacement but I returned it so there is no 'additional' good here to which additional VAT would attach). Thanks RH having a debate with DHL as to whether I owe VAT on that I purchased