Can I reclaim VAT on imported wood from EU?

[TeaMonsta]

I am VAT registered and import firewood from Lithuania and Latvia. My accountant is telling me that no VAT is due on the imports but I'd like to check with anyone else who imports, so that I don't get any nasty surprises later on. Is the accountant right? Or if VAT is due, can I reclaim it in my next VAT return? Thanks in advance for any advice offered

 

[Peasgood]

If you are VAT registered you should be able to tell the seller this and they don't charge VAT when you tell them your number. Whether this is still the case post Brexit I am not sure but do think it is. Your accountant should be the one to know.

You still have to charge it when you sell.

 

(I am not an accountant)

[Alycidon]

Since Brexit the whole import/VAT system has changed as you are aware.   I bring in kiln dried logs but I cant see that the system will be to different.   You used to declare the import in your quarterly VAT return and at that point paid the VAT.  Your supplier needed a copy of the signed receipt to be able to sort the VAT aspect in their country.

 

VAT is certainly due at 20% on logs in the UK,    but selling to the home owner then its sell at 5%.   Suggest you contact the VAT office about cord,  I suspect your accountant may be wrong.

 

I assume you are up to speed with the Forestry Commissions requirements re reporting the paperwork needed re the source and species,  the import and getting it inspected at point of delivery.

 

You now have to declare your container to UK customs and pay the UK VAT due before UK Customs will release it for onward shipment to you.   To do that you can either purchase the software needed or get a specialist to do the clearance for you,  I use Yes2ship as I only do a couple of containers a year.   They send you bill for the UK VAT and their costs,  once paid your container gets released for onward shipment.  takes about a week from the ship docking if all goes smoothly.

 

My first container under this system is being delivered Friday am,  ship docked last Weds but taken 2 days to get hold of Containerships to book the onward transport.

 

You can set up a VAT deferment account but I am unsure if my accounts software (Xero) can handle that yet.  Hence I just paid it upfront.

 

Hope that helps,

 

A

Edited June 29, 2021 by Alycidon

[TeaMonsta]

Thanks, folks. I've had a few containers delivered since Brexit. HMRC charge the VAT when it lands at the dock. This amount is shown in the E2 declaration and is supposed to be taken care of in my quarterly VAT return (unless deferring it or paying immediately) but I'm not sure that my accountant has gone about things the right way and so I'm concerned that I might get hit with a big bill in the future. If it can be reclaimed, though, there's no problem...

[Alycidon]

5 hours ago, TeaMonsta said:

Thanks, folks. I've had a few containers delivered since Brexit. HMRC charge the VAT when it lands at the dock. This amount is shown in the E2 declaration and is supposed to be taken care of in my quarterly VAT return (unless deferring it or paying immediately) but I'm not sure that my accountant has gone about things the right way and so I'm concerned that I might get hit with a big bill in the future. If it can be reclaimed, though, there's no problem...

If its for logs then its a purchase for resale I assume, in that case you cant reclaim it.

 

Would be interested if there is no import VAT on cord wood.

 

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