Vat registration question

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Chris Jenkins

Free Member
Mar 16, 2021
26
1
  • #1
    Hi All. We have recently registered for v.a.t. We import goods from china which we have always paid v.a.t on . We were registered beginning of December. Are we able to claim vat paid , prior to registration , as we still have quite a lot of stock which was purchased prior to registration . Sorry if it’s a stupid question but i have to ask for peace of mind!
     
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    UK Contractor Accountant

    UK Contractor Accountant

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    Sep 18, 2013
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  • #2
    Pre-registration VAT incurred on goods can be claimed provided that:

    •the goods were obtained within four years before the effective date of registration; and
    •the goods are still on hand at the date of registration, either in their original state or incorporated into other goods.

    Pre-registration VAT incurred on services can be claimed provided that:

    •the services were obtained within six months before the effective date of registration; and
    •the services were not disposed of before registration.
     
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    Chris Jenkins

    Free Member
    Mar 16, 2021
    26
    1
  • #3
    Many thanks. That’s cleared it up. Chris
    UK Contractor Accountant said:
    Pre-registration VAT incurred on goods can be claimed provided that:

    •the goods were obtained within four years before the effective date of registration; and
    •the goods are still on hand at the date of registration, either in their original state or incorporated into other goods.

    Pre-registration VAT incurred on services can be claimed provided that:

    •the services were obtained within six months before the effective date of registration; and
    •the services were not disposed of before registration
    Click to expand...
     
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    Paul Kelly ICHYB

    Paul Kelly ICHYB

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    • Jan 21, 2008
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  • #4
    If like it was, you will need to get a C79 to claim.

    Also, look at EORI - this will help things.
     
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    Customs Geek

    Free Member
    • Oct 27, 2022
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  • #5
    Chris Jenkins said:
    Hi All. We have recently registered for v.a.t. We import goods from china which we have always paid v.a.t on . We were registered beginning of December. Are we able to claim vat paid , prior to registration , as we still have quite a lot of stock which was purchased prior to registration . Sorry if it’s a stupid question but i have to ask for peace of mind!
    Click to expand...
    Now you are VAT registered also make sure that you follow the correct import procedures to reclaim the import VAT in the future. You should have had the opportunity when registering for VAT to also request an EORI number . This EORI number is your importer number and will contain your VAT number.
    HMRC only accept officially HMRC produced documents as proof for input VAT ( reclaim). These documents are only generated if your EORI number and VAT number are declared on the import declaration which is why it’s essential to have an EORI number.
    Without an EORI you would not be regarded as a business or sole trader importer but a personal importer and have no right to import vat recovery.

    There are two ways for a VAT registered business/ sole trader to account for import VAT which you use is a matter of choice.
    1, payment of VAT at import which will generate a monthly C79 certificate to be used for reclaim on your next VAT return.
    2. Use of postponed VAT accounting which will generate a PVA statement. This statement allows you to account for the VAT and reclaim the VAT on the same VAT return helping cash flow.
    You must tell the courier or customs agent which you want to use.
    Both documents can be downloaded every month by the importer via their government gateway account. HMRC don’t send them to you.

    You should not use the invoices from couriers or customs agents as proof of VAT payment. These invoices are not VAT invoices as the courier isn’t charging VAT but instead recovering the amount of VAT they have paid to HMRC on the importer’s behalf. I know a lot of importers do use the courier invoices but they risk HMRC disallowing input VAT if you have a VAT inspection.
    HMRC may however accept these as alternative proof prior to your VAT registration.


    If you haven’t got an EORI number then it’s easy and quick to get one :
    www.gov.uk/eori

    Here are the official links to get the official proof of import VAT .
    www.gov.uk/guidance/get-your-import-vat-certificates
    www.gov.uk/guidance/get-your-postponed-import-vat-statement

    Hopefully this basic information will be helpful to you and others . (This information only covers shipments over £135, different procedures apply to these low value imports and imports via the post).
     
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    C

    Chris Jenkins

    Free Member
    Mar 16, 2021
    26
    1
  • #6
    Customs Geek said:
    Now you are VAT registered also make sure that you follow the correct import procedures to reclaim the import VAT in the future. You should have had the opportunity when registering for VAT to also request an EORI number . This EORI number is your importer number and will contain your VAT number.
    HMRC only accept officially HMRC produced documents as proof for input VAT ( reclaim). These documents are only generated if your EORI number and VAT number are declared on the import declaration which is why it’s essential to have an EORI number.
    Without an EORI you would not be regarded as a business or sole trader importer but a personal importer and have no right to import vat recovery.

    There are two ways for a VAT registered business/ sole trader to account for import VAT which you use is a matter of choice.
    1, payment of VAT at import which will generate a monthly C79 certificate to be used for reclaim on your next VAT return.
    2. Use of postponed VAT accounting which will generate a PVA statement. This statement allows you to account for the VAT and reclaim the VAT on the same VAT return helping cash flow.
    You must tell the courier or customs agent which you want to use.
    Both documents can be downloaded every month by the importer via their government gateway account. HMRC don’t send them to you.

    You should not use the invoices from couriers or customs agents as proof of VAT payment. These invoices are not VAT invoices as the courier isn’t charging VAT but instead recovering the amount of VAT they have paid to HMRC on the importer’s behalf. I know a lot of importers do use the courier invoices but they risk HMRC disallowing input VAT if you have a VAT inspection.
    HMRC may however accept these as alternative proof prior to your VAT registration.


    If you haven’t got an EORI number then it’s easy and quick to get one :
    www.gov.uk/eori

    Here are the official links to get the official proof of import VAT .
    www.gov.uk/guidance/get-your-import-vat-certificates
    www.gov.uk/guidance/get-your-postponed-import-vat-statement

    Hopefully this basic information will be helpful to you and others . (This information only covers shipments over £135, different procedures apply to these low value imports and imports via the post).
    Click to expand...
    Customs Geek said:
    Now you are VAT registered also make sure that you follow the correct import procedures to reclaim the import VAT in the future. You should have had the opportunity when registering for VAT to also request an EORI number . This EORI number is your importer number and will contain your VAT number.
    HMRC only accept officially HMRC produced documents as proof for input VAT ( reclaim). These documents are only generated if your EORI number and VAT number are declared on the import declaration which is why it’s essential to have an EORI number.
    Without an EORI you would not be regarded as a business or sole trader importer but a personal importer and have no right to import vat recovery.

    There are two ways for a VAT registered business/ sole trader to account for import VAT which you use is a matter of choice.
    1, payment of VAT at import which will generate a monthly C79 certificate to be used for reclaim on your next VAT return.
    2. Use of postponed VAT accounting which will generate a PVA statement. This statement allows you to account for the VAT and reclaim the VAT on the same VAT return helping cash flow.
    You must tell the courier or customs agent which you want to use.
    Both documents can be downloaded every month by the importer via their government gateway account. HMRC don’t send them to you.

    You should not use the invoices from couriers or customs agents as proof of VAT payment. These invoices are not VAT invoices as the courier isn’t charging VAT but instead recovering the amount of VAT they have paid to HMRC on the importer’s behalf. I know a lot of importers do use the courier invoices but they risk HMRC disallowing input VAT if you have a VAT inspection.
    HMRC may however accept these as alternative proof prior to your VAT registration.


    If you haven’t got an EORI number then it’s easy and quick to get one :
    www.gov.uk/eori

    Here are the official links to get the official proof of import VAT .
    www.gov.uk/guidance/get-your-import-vat-certificates
    www.gov.uk/guidance/get-your-postponed-import-vat-statement

    Hopefully this basic information will be helpful to you and others . (This information only covers shipments over £135, different procedures apply to these low value imports and imports via the post).
    Click to expand...
     
    Upvote 0
    C

    Chris Jenkins

    Free Member
    Mar 16, 2021
    26
    1
  • #7
    Customs Geek said:
    Now you are VAT registered also make sure that you follow the correct import procedures to reclaim the import VAT in the future. You should have had the opportunity when registering for VAT to also request an EORI number . This EORI number is your importer number and will contain your VAT number.
    HMRC only accept officially HMRC produced documents as proof for input VAT ( reclaim). These documents are only generated if your EORI number and VAT number are declared on the import declaration which is why it’s essential to have an EORI number.
    Without an EORI you would not be regarded as a business or sole trader importer but a personal importer and have no right to import vat recovery.

    There are two ways for a VAT registered business/ sole trader to account for import VAT which you use is a matter of choice.
    1, payment of VAT at import which will generate a monthly C79 certificate to be used for reclaim on your next VAT return.
    2. Use of postponed VAT accounting which will generate a PVA statement. This statement allows you to account for the VAT and reclaim the VAT on the same VAT return helping cash flow.
    You must tell the courier or customs agent which you want to use.
    Both documents can be downloaded every month by the importer via their government gateway account. HMRC don’t send them to you.

    You should not use the invoices from couriers or customs agents as proof of VAT payment. These invoices are not VAT invoices as the courier isn’t charging VAT but instead recovering the amount of VAT they have paid to HMRC on the importer’s behalf. I know a lot of importers do use the courier invoices but they risk HMRC disallowing input VAT if you have a VAT inspection.
    HMRC may however accept these as alternative proof prior to your VAT registration.


    If you haven’t got an EORI number then it’s easy and quick to get one :
    www.gov.uk/eori

    Here are the official links to get the official proof of import VAT .
    www.gov.uk/guidance/get-your-import-vat-certificates
    www.gov.uk/guidance/get-your-postponed-import-vat-statement

    Hopefully this basic information will be helpful to you and others . (This information only covers shipments over £135, different procedures apply to these low value imports and imports via the post).
    Click to expand...
    Many thanks for this. I have always had the e.o.r.i .
     
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