Customs Updates - Do not Let the Small Print Throw You
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5th June 2013
Two recent EU cases
highlight the need to ensure all procedural matters are followed where
Reliefs are used and that not to be aware of these can be costly.
In both cases whilst there was no doubt that the purpose of
had taken place, namely that goods had been re-exported, but because
business in question had not strictly followed the procedures laid down
law, duty and VAT relief were denied. This seems somewhat harsh but is
Commission directive so it is worth ensuring any import / export
business is fully
aware of what is required.
In the first case, a business imported, processed and
using the Simplified Inward Processing Relief (IP) which suspends duty
import VAT. However, one of the conditions of simplified IP is that a
discharge notice has to be sent to HMRC’s NIRU in Ennisklillin within a
specified period, usually 30 days after a 6 month period following
European Court of Justice has ruled in the case of Dohler Neuenkirchen
that as this had not been done, duty and VAT was due on all goods even
could be shown that they had otherwise been correctly re-exported.
In the second, Eurogate Distribution operated a Customs
although re-export documents were correctly drawn up at the time goods
removed from the Customs Warehouse, as Eurogate had not updated its
records in a timely fashion, duty and VAT relief were denied.
The moral of both cases is to be fully aware of the procedural
requirements and ensure they are acted on.
Customs Director, David Miller .
About the Author
VAT People are leading VAT and Customs Duty
consultants based in the
North West of England. We work with a wide range of businesses
throughout the UK as well as assisting our accountancy colleagues to
unravel the thorny VAT issues for their clients. We are one of the UK's
largest and most comprehensive sources of VAT and Customs advice, our
consultancy team having over 140
years of experience in VAT and Customs
gained in either HMRC or a Big 4 accountancy practice environment.
Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.
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Article Published/Sorted/Amended on Scopulus 2013-06-17 13:09:14 in Tax Articles