Import VAT on goods borrowed and not owned

Enom

Hello,

I am borrowing an item from a friend in the states for a few months. I do not own the item and no ownership transfer has taken place, I am simply borrowing it and sending it back. I have received notification of a charge of £60 on import VAT. I contacted HMRC to advise the situation that the item is being borrowed temporarily and then returned, they advised me that I have to pay it and if I return the goods in 3 months I might be able to get that money back.. but, there is not much information on their website about borrowing items, only for internet purchases (not a purchase), gifts (not a gift), or samples (not a sample). I understand VAT should be paid on items that I physically own, but I do not own an item and can't get my head around paying VAT on something that isn't mine.

Has anyone else had any experience on this? Maybe I am looking at it totally wrong. I don't like the idea also that its possible upon a review they decide that the VAT won't be refunded, as I don't believe it should be paid in the first place.

Thanks in advance,

Enom

In case anyone is interested, there is something called temporary admission. You normally need to get this filled out prior to sending out the goods from outside the EU, however, you can send a retrospective authorization after receiving the goods in exceptional circumstances. It allows up to 24 months, and this can be renewed. The form however is a carbon form and so has to be mailed out to you. I am awaiting the form to be sent out to me, advised between 7 to 10 days. I will let you know how I get on.

CKhalvashi

Enom wrote: »

In case anyone is interested, there is something called temporary admission. You normally need to get this filled out prior to sending out the goods from outside the EU, however, you can send a retrospective authorization after receiving the goods in exceptional circumstances. It allows up to 24 months, and this can be renewed. The form however is a carbon form and so has to be mailed out to you. I am awaiting the form to be sent out to me, advised between 7 to 10 days. I will let you know how I get on.

I was just going to mention this.

Most of our goods are EU-owned, but when we do temporary equipment swaps with our Russian company, we need to fill the forms out ahead of them arriving.

CK

Enom

Hey,

Just a quick update, received the C88 form in the post, and it means jibberish to me. After calling HMRC asking for guidance I was advised I needed Volume 3 of a massive book to get a commodity code, something I do not have. She went off and spoke to her supervisor and advised me to fill out BOR286 which is for incorrectly priced items.. I was advised in this circumstance it would allow me 3 years rather than 2 years. This doesn't at all sound correct though and hesitant to do it this way.

CK - how did you know the commodity codes etc for items to fill out the form?

Thanks,