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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4348
Experience:  FCCA FCMA CGMA ACIS
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I bought a machine located in usa .the company has a uk parent

Customer Question

I bought a machine located in usa .the company has a uk parent and a sister company .the uk company manufactures packaging materials
I placed ored with the uk sister ,sending an official order to the uk fd he accepted the order which stated price delivered duty paid
I subsequently paid the full amount into the uk company account
I know they paid vat and duty on import
I requested a vat invoice to offset my vat payments and was refused the fd stating that they were only acting on behalf of the us company and as such vat wasn't payable and if I wanted a vat invoice it would be on top of the money I have already paid
to date they have avoided any reply accepting liability making it rather difficult for me to offset my vat
do I ask for a vat invoice based on the incorrect amount just to prove a vat situation exists and then start some action to sort it out , start immediate legal action or am I wrong and I have no claim against them
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Although this sort of thing is very irritating I do not think you actually need to be over concerned at this stage. When the machine arrives in the UK Customs will charge Import Duty and VAT also. The customs duty becomes part of your costs of sale and the VAT can be reclaimed in the usual way through your quarterly return.
I o hope that I have helped set your mind at rest on this matter and shown you a way forward.
Customer: replied 2 years ago.

your missing the point , the machine is already here and as stated paid for and I cant reclaim the vat as the tax man requires paperwork showing I paid vat , something I cannot do

Expert:  bigduckontax replied 2 years ago.
Just tell the financial director that either you receive a proper VAT invoice or you will report his antics to HMRC. Also write to HMRC advising them of the failure to produce a proper VAT invoice. With respect you were very ill advised to pay for this item without a formal invoice procedure.
Customer: replied 2 years ago.

Already told hmrc and I don't know about you but I don't usually expect to have problems over vat ,

I find your advise less than useful , goodbye

Expert:  bigduckontax replied 2 years ago.
Nor indeed do I. You must persist against the agents who sold you the item.
Customer: replied 2 years ago.
Relist: Answer quality.
I require a response from someone who is expert in inco terms and vat
Expert:  bigduckontax replied 2 years ago.
That is your perogative.
Customer: replied 2 years ago.
Relist: Answer quality.
I require a response from someone who is expert in inco terms and vat
Expert:  bigduckontax replied 2 years ago.
Another expert has looked at your question, but has not made a response.