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Based on our calculation we should have an overpayment of 100k on our VAT account. However, based on HMRC the amount is lower (83k). We did not get any penalties we are aware of. How can we check how the payments were accounted by the HMRC?
Is there any procedure to be followed ( eg. formal application). The tax.service.gov.uk VAT account overview does not show any variances.
Many thanks in advance.
While preparing the the VAT return for May/June 2022 we did transfer the correct prepayment amount to HMRC however we did not update our analytics ( we left the prepayment value from previous period). Therefore, we have an overpayment. If we decide to leave the unallocated payment on the VAT account and decrease it from the next liability, do we need to inform HMRC about it? Do we need to submit any formal application in order to offset the next liability with the overpayment?
If so, how we can do that?
In general we have three scenarios for these repairs services.
• Scenario 1 – Original goods sold to customers include a standard manufacturer warranty. The standard manufacturer warranty is effectively subject to VAT as part of sale of goods. If the repair is covered by the standard manufacturer warranty, no charge is made by us to the UK customer for the repair. Goods are sent to NL for repair and no charge is currently made by us and our branch in NL for repair services . We are responsible for exporting the goods to NL and for dealing with the re-importation of the repaired goods into the UK.
• Scenario 2 – Customer purchases a separate Gold contract (which we understand is subject to VAT). If the repair is covered by the Gold contract, no charge is made by us to the UK customer for the repair. No charge is currently made by NL branch to us for repair services . We are responsible for exporting the goods to NL and for dealing with the re-importation of the repaired goods into the UK.
• Scenario 3 – Customer may require a repair to goods ( which were previously bought from us) that it owns, but the repairs are not covered by a standard manufacturer warranty or Gold contract. We charge VAT on the repair services carried out for the customer. The goods are shipped from UK customer to Netherlands for repair and NL issues an invoice to our branch in UK. We will account for VAT via the reverse charge mechanism. We will be responsible for exporting the goods to NL and for dealing with the re-importation of the repaired goods into the UK.
For scenario one we use IPR. For scenario 2 we have applied for OPR however we were advised by external tax advisor that we have no right to reclaim import VAT on service cost and freight. For scenario 3 we also do not reclaim VAT for repair cost and freight.
As in all scenarios the goods we have already sold do not belong to us anymore. The ownership was transferred to third party. Thus, are we in position to reclaim the VAT from repair service and freight?
Is the manual https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit13300 effective?
Is it possible to reclaim import VAT for repair services ( goods do not belong to the Company anymore, they were other sold before and are repaired under contract or end customers without insurance contract ask for repair or put into free circulation after repair?
I have seen that there was brief notice 15 in 2020 stating that there will be change for reclaiming VAT upon repair which is no longer available on the website. Can you please give more insight?
If we register VAT Group (2 members) I understand that we will obtain 2 EORI numbers, ending with 000 for representative of the group and ending 006 for the member. Will we use the same Gateway ID and password to extract PVA or deferment statements? Or should we have two separate Gateway IDs?
The Company I have just started working for did not save the login credentials for the representative of the VAT Group. We have to currently activate the CDS. Using the "Forgot gateway ID and password" did not help ( after indicating email address and registration number , we were advised to contact helpline. Is there a successful way to recover the forgotten Gateway ID and password?