This brief explains the outcome of the review of the policy outlined in Revenue and Customs Brief 2 (2019), issued in April 2019, which clarified the correct treatment for deduction of import VAT paid by taxable persons that are not the owners of the relevant goods.
HMRC has published Revenue & Customs Brief 15/20 which confirms its position, as previously set out in Brief 2/19, that only the owner of imported goods can recover import VAT (and from 1 January 2021, apply Postponed Import VAT Accounting). This policy will impact:
- Businesses who import goods into the UK
- Toll manufacturing operations
- Cross border leasing
- Sale of goods in Customs Warehouses
- Import for repair processes
- Operation of customs Special Procedures
Source HMRC
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