Claiming VAT input tax early

[Baretto]

Hi,

We are a VAT registered company.

We are currently working on our VAT return for the period Apr-Jun. We had a large shipment due to arrive in June which was delayed to the start of July. We incurred a large import VAT bill for this shipment which we had forecasted to claim back on our Apr-Jun return. However as the shipment was late and arrived in July, we now have to wait for our Jul-Sep return to claim this import VAT back. This means we will not get the VAT back until October at the earliest, three months later than forecasted. This is going to significantly affect our cashflow.

Is it possible to claim the VAT for this July import in our Apr-Jun return as long as we have procedures in place to ensure it is not claimed twice?

 

[lesvatadvice]

The 'tax point' for an importation is the date the goods arrive. I think therefore you are stuck.

 

[Mister B]

I would say not. We've suffered from this in the past, and unfortunately, there's nothing you can do about it as it's all down to the date that the entry is processed.

 

[TheoNe]

Unfortunately, I think not. As the previous contributors have stated, the tax becomes payable on the date of entry into the country. You cannot claim the VAT on something that has yet to actually arrive in the UK.

 

[Deleted member 59730]

If a VAT invoice has been issued 15 days or more after the date of supply, the tax point will be the date of supply. If a payment is received or a VAT invoice is issued in advance of the supply being made, the tax point will be the earlier of either the date payment is received or the invoice date.

I used to ask my suppliers to send the invoice before delivery to help my cash flow.

Until Berexit the date the goods enter has no more to do with it than the date a delivery crosses the Tamar into Cornwall.

 

[spidersong]

I used to ask my suppliers to send the invoice before delivery to help my cash flow.

Until Berexit the date the goods enter has no more to do with it than the date a delivery crosses the Tamar into Cornwall.

But unfortunately the suppliers for Import VAT, are HMRC and the date they issue 'invoices' (C79's) will be the date of entry, so for Import VAT it still has a fair bit to do with it.

 

[Deleted member 59730]

But unfortunately the suppliers for Import VAT, are HMRC and the date they issue 'invoices' (C79's) will be the date of entry, so for Import VAT it still has a fair bit to do with it.

Supplier in Italy does final count on order, issues an invoice to me on the date I specify, truck arrives in Harwich a few days later, Customs wave the shipment through, shipment goes via truck to Bristol where it is put on a Cornwall bound truck for delivery.

I've done this scores of times and have obviously lost many C79s because I've never seen one. Not knowing all the rules has saved me a fortune.

 

[CHUKTC]

Goods arriving from an EU country are treated completely differently to goods from outside the EU. You only get a C79 for goods from outside the EU. Going back to the original question I agree with lesvatadvice I don't think there is anything you can do. We often have the same problem. Careful timing to try and avoid crossing 2 VAT periods helps but as you have found out if a vessel arrives late even best laid plans can fail.

 

[spidersong]

Wait a minute I'm confused now: how are you incurring Import VAT if you're not actually importing anything? (Imports are only from outside the EU)

If this is an EU acquisition then the Italian Company shouldn't be charging you VAT you should be accounting for acquisition tax which is an in and out on the same VAT return, so what VAT are you paying and to whom? Is this actually UK VAT or is it Italian VAT (which can never be claimed on a UK VAT return in the first place)?

 

[spidersong]

Wait a minute - just noticed the poster talking about Italy isn't the one incurring Import VAT, so they're talking about something different to the OP, so you can ignore the above!