Do I have to pay VAT twice?

kappakiller

Hey, I've got some expensive replacement items that are being sent to me from a chinese supplier. They told me that I didn't have to send back the faulty items at this time.

However, I am still concerned that I'll have to pay VAT again for these items. I've called hmrc and looked at a few forums and some people say that all I need to do is write "REPLACEMENT GOODS" on the parcel and they won't charge VAT but others say that I'll have to appeal to get my money back by providing evidence that I've previously paid VAT.

Does anyone have any experience or advice on which one is correct?

Thanks.

wealdroam

kappakiller wrote: »

Hey, I've got some expensive replacement items that are being sent to me from a chinese supplier. They told me that I didn't have to send back the faulty items at this time.

However, I am still concerned that I'll have to pay VAT again for these items. I've called hmrc and looked at a few forums and some people say that all I need to do is write "REPLACEMENT GOODS" on the parcel and they won't charge VAT but others say that I'll have to appeal to get my money back by providing evidence that I've previously paid VAT.

Does anyone have any experience or advice on which one is correct?

Thanks.

I would suggest that any appeal to HMRC would need to show that the faulty goods have been exported.

It strikes me that you have imported two items, so it is not unreasonable that vat should be paid on both items.

Having received the replacement, and paid vat on it, there is nothing stopping you getting the first item fixed, or even selling it on in its current condition.

Sorry, but I cannot see any way of you only paying vat on one imported item.

kappakiller

wealdroam wrote: »

I would suggest that any appeal to HMRC would need to show that the faulty goods have been exported.

It strikes me that you have imported two items, so it is not unreasonable that vat should be paid on both items.

Having received the replacement, and paid vat on it, there is nothing stopping you getting the first item fixed, or even selling it on in its current condition.

Sorry, but I cannot see any way of you only paying vat on one imported item.

That would make sense. I'm still confused as to why the hmrc woman on the phone assured me that as long as it was stated on the parcel that the items are replacement goods, VAT would not be charged. Thanks anyways :money:

wealdroam

kappakiller wrote: »

That would make sense. I'm still confused as to why the hmrc woman on the phone assured me that as long as it was stated on the parcel that the items are replacement goods, VAT would not be charged. Thanks anyways :money:

Did you tell 'the hmrc woman' that you still had the first item?

I ask because when you first pm'd me you left that info out and I too arrived at a different conclusion.

daytona0

kappakiller wrote: »

That would make sense. I'm still confused as to why the hmrc woman on the phone assured me that as long as it was stated on the parcel that the items are replacement goods, VAT would not be charged. Thanks anyways :money:

I reckon it is because there are two ways of interpreting "replacement" and you were just both not on the same wavelength.

- BUYING a replacement = VAT due

- Having a free replacement sent to remedy the faulty one = VAT already paid and so HMRC correctly advising that nothing due.

kappakiller

wealdroam wrote: »

Did you tell 'the hmrc woman' that you still had the first item?

I ask because when you first pm'd me you left that info out and I too arrived at a different conclusion.

Why would it matter? Either way she said that as long as the parcel is marked with "REPLACEMENT GOODS" they wouldn't charge VAT. How would hmrc know whether I still have the faulty items or not? In fact, how would they know they were replacement items in the first place? That's why I was a little skeptical

kappakiller

daytona0 wrote: »

I reckon it is because there are two ways of interpreting "replacement" and you were just both not on the same wavelength.

- BUYING a replacement = VAT due

- Having a free replacement sent to remedy the faulty one = VAT already paid and so HMRC correctly advising that nothing due.

I see what you're saying. How would I prove to them that its a free-replacement? Is it something I can specify with them before hand or would I have to appeal?

daytona0

kappakiller wrote: »

I see what you're saying. How would I prove to them that its a free-replacement? Is it something I can specify with them before hand or would I have to appeal?

email trails between you and the seller? A receipt showing that an item was shipped back to the seller?

DigForVictory

So long as your VAT Account shows in glowing Technicolor that you paid the VAT the first time, & the replacement article is exactly that, a replacement for a duff article (yes, the correspondence will help), then you shouldn't need to pay VAT a second time.
Frankly, if you can walk a neighbour's 10 year old through the VAT Account & they can understand the logic, you'll find the VAT inspector will almost certainly accept it.

If you do have to pay it a second time (delivery systems can be So Inflexible), you can reclaim it but be absolutely clear on the VAT Account what you are doing, why & what leads you to feel you can take £X off HMRC without permission in triplicate!

wealdroam

DigForVictory wrote: »

So long as your VAT Account shows in glowing Technicolor that you paid the VAT the first time, & the replacement article is exactly that, a replacement for a duff article (yes, the correspondence will help), then you shouldn't need to pay VAT a second time.
Frankly, if you can walk a neighbour's 10 year old through the VAT Account & they can understand the logic, you'll find the VAT inspector will almost certainly accept it.

If you do have to pay it a second time (delivery systems can be So Inflexible), you can reclaim it but be absolutely clear on the VAT Account what you are doing, why & what leads you to feel you can take £X off HMRC without permission in triplicate!

Doesn't all that assume the OP is a vat registered trader?

With nothing indicating otherwise, I had assumed the OP was a consumer.