Skip to main content

This is a new service – your feedback will help us to improve it.

  • https://intranet.prod.dop.corp.hmrc.gov.uk/news/moving-our-new-ways-working

    Hi, Please would you double-check the advice provided above by "HMRC Admin 10", to ensure that it is correct. My understanding is that the tax deferral option doesn’t apply to transport packaging (singled out in the legislation), but that tax credits can be used to claim a credit on all chargeable plastic packaging components where tax has been paid on the components on import, and which are then exported. I understand that the pallets will need to be accounted for at import as a packaging component in their own right (and tax paid is applicable i.e., they contain less than 30% recycled plastic) and then the tax claimed back using the tax return during which the export of the pallets took place. Thanks
  • RE: Importing plastic packaging to be used to export goods; the Plastic Packaging Tax (PPT)

    Thank you for your reply. Since posting the first query, I have continued to research this area. I would like to check your suggestion that the "the tax can be deferred and then cancelled when the export takes place." As noted in the original query, the pallets will be used to transport goods out of the UK. I don't believe that we can defer the tax in this scenario... albeit I struggle to see the policy rationale for this difference between export, and export with goods. Please would you confirm whether your reply "the tax can be deferred and then cancelled when the export takes place" is correct or not.
  • RE: Importing plastic packaging to be used to export goods; the Plastic Packaging Tax (PPT)

    Is the answer that you cannot claim 'relief', but you can claim a 'credit'? i.e. you have to pay the tax and then claim a credit each time that it is moved into and back out of the UK?
  • Importing plastic packaging to be used to export goods; the Plastic Packaging Tax (PPT)

    We will import our own empty plastic pallets (purchased in the EU) into the UK. These plastic pallets will be used to export goods from the UK to the EU. This cycle will repeat. We will re-import those same plastic pallets, once the goods have been taken from them, from the EU back into the UK. We will put goods onto the same pallets and export goods from the UK. https://www.gov.uk/government/publications/examples-of-packaging-in-and-out-of-scope-of-plastic-packaging-tax/packaging-in-and-out-of-scope-of-plastic-packaging-tax#plastic-packaging-designed-for-use-in-the-supply-chain This guidance notes that: "Examples of items not covered by this exemption, that are subject to the [Plastic Packaging] tax (PPT), include: transport packaging: imported into the UK as goods in their own right" It would appear that we would need to pay the Plastic Packaging Tax when we import the empty reusable plastic packaging. There are rules on deferring or obtaining credits in respect of the Plastic Packaging Tax. https://www.gov.uk/guidance/claim-a-credit-or-defer-paying-plastic-packaging-tax "Exporting finished plastic packaging: You can claim a credit or relief for finished plastic packaging which is exported from the UK if: at the point you import the finished plastic packaging, you intend to export the packaging yourself. *** You cannot claim relief for finished plastic packaging used for transport. ***" This suggests that we cannot reclaim the PPT when we use the reusable plastic pallets to transport our goods from the UK to the EU. Is it the case that, each time we import the same reusable plastic pallet, we will have to pay the PPT? and that we will be unable to recover this PPT? i.e. we will pay the PPT multiple times in respect of the same pallet? This seems very odd. I'm sure that I must be missing something,...
  • RE: Movement of own goods from GB, through NI, to Republic of Ireland

    For the avoidance of doubt… restating the example.... We manufacture goods, and use GB inputs of £80. The manufactured goods are valued at £100. We move those £100 of own goods from GB, through NI, to the Republic of Ireland. Does this mean that for this purchase of raw material inputs, and then non-stop movement of the manufactured good from GB, through NI, to ROI, the VAT return will include: £80 of purchases in box 7; £16 of VAT reclaimed in box 4 £20 VAT in each of boxes 1 and 4 (on the movement from GB to NI); £100 of purchases in box 7 (£100 good into NI from GB; nothing in box 6 at this stage); £100 of sales in box 6 (the £100 good being recorded as moving from NI to ROI); £100 of EC sales in box 8 (the £100 movement from NI to ROI). A total of: Box 1, VAT on sales: £20 = £20 Box 4, VAT reclaim: £16 + £20 = £36 Box 6, Value of sales: £100 Box 7, Value of purchases: £80 + £100 = £180 Box 8, EC sales: £100 Box 1 / Box 6 = 20% - this appears odd when this is a sale ending outside of the UK Box 4 / Box 7 = 20% - this appears reasonable ‘Value of purchases of £180’ exceeds the ‘Value of sales of £100’ It would be good to have it confirmed that this ‘odd’ result (especially with purchases exceeding sales) is considered by HMRC to be the correct result.
  • RE: Movement of own goods from GB, through NI, to Republic of Ireland

    Hi, Thanks for your message. You note (emphasis added): "We must see the first movement of the goods from GB to NI as an import and as it is an import you would *not* need to include the figure in box 6, only box 7." If there is an import into NI, is there also an export from GB that would require box 6 to be completed? If we follow your suggestion, in our VAT return in respect of the movement of finished goods we will have net £nil “inputs / outputs” (£100 in each of boxes 6 and 7 from the transaction as a whole), plus £100 in Box 8 (EC Sales)... extending this further, we will also have the inputs used to manufacture the goods in GB; adding in these inputs to the VAT return will mean that the total inputs will exceed the outputs... a net negative of boxes 6 and 7 for goods manufactured in GB, with £100 of sales in Box 8.... Your thoughts on this would be appreciated. Perhaps HMRC could provide definitive guidance on how to deal with what would seem to be a fairly generic fact pattern, that many other exporters from the UK must be dealing with. Thanks for your support
  • Movement of own goods from GB, through NI, to Republic of Ireland

    We are moving our own goods from GB, through NI, to the Republic of Ireland. For the GB to NI element, HMRC guidance at: https://www.gov.uk/government/publications/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021/accounting-for-vat-on-goods-moving-between-great-britain-and-northern-ireland-from-1-january-2021#businesses-moving-their-own-goods-from-great-britain-to-northern-ireland notes that we should account for output tax and input tax in respect of the movement, so boxes 1 and 4 (output tax and input tax). Should we also complete boxes 6 and 7 (sales and purchases) in respect of the movement from GB to NI? The position re boxes 6 and 7 is not covered in the guidance. The guidance at: https://www.gov.uk/guidance/vat-on-movements-of-goods-between-northern-ireland-and-the-eu#section9 notes that when the goods move from NI to ROI, we should complete boxes 6 and 8 (sales, and sales to EC). Using the example of a good worth £100, does this mean that for this non-stop movement from GB, through NI, to ROI, the VAT return will include: £20 VAT in each of boxes 1 and 4 (on the movement from GB to NI); £100 of sales in box 6 (£100 good from GB to NI); £100 of purchases in box 7 (£100 good into NI from GB); a further £100 of sales in box 6 (the same £100 good, now being recorded as moving from NI to ROI); £100 of EC sales in box 8 (the £100 movement from NI to ROI). This appears to be double-counting in box 6; as box 6 will contain £200 of sales, even through the company has only made one £100 sale from the UK. Is this correct? I guess when you net everything down, you're left with one net sale (two sales less one purchase) and zero net VAT, which is consistent with an export from the UK... it just feels odd.
  • Intrastat and Onward Supply Relief

    We are following the HMRC guidance: "How to claim VAT relief on goods imported for onward supply to an EU country; If you import goods into Northern Ireland from outside the EU for onward supply to the EU, find out about claiming Onward Supply Relief." We are importing goods into Northern Ireland, from Great Britain, for onward supply to the Republic of Ireland. https://www.gov.uk/guidance/how-to-claim-vat-relief-on-goods-imported-for-onward-supply-to-an-eu-country The guidance notes that, after you’ve claimed, you must: a) include the goods on your EC Sales Lists b) record the EU trade figures on your VAT Return There is no reference to Intrastat in this guidance. Should the movement of goods from Northern Ireland to the Republic of Ireland be included on an Intrastat filing? Or should the movement of goods be excluded from Intrastat filings when Onward Supply Relief is being used?