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Sam, Accountant
Category: Tax
Satisfied Customers: 14157
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Our client did not charged vat to its clients on fruit juice,

Customer Question

Our client did not charged vat to its clients on fruit juice, neither it was paid at the time of import. After 3 years of business, got a bill of import vat of £60k. Difficult to pay straight away. I have got 2 questions. 1) Can this import vat be claimed back? 2) Client did not charge vat. How to go about Output vat charge?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer. This charge can certainly be taken into account as VAT suffered - but as you did not go on to charge the customer VAT - but should have then you need to amend the VAT returns to pay the additional charge your client should have collected on the sale (if they are VAT registered which you do not indicate) If VAT registered then I would suggest in view of the time limit - that you write to HMRC VAT re this position and if your client was/is not VAT registered then I would consider whether this is a viable option overall. And then establish whether you backdate just before the date of this bill OR back to the last 3 years - which again you would need to discuss with HMRC VAT Let me know if I can assist further Thanks Sam
Customer: replied 2 years ago.
the client was registered for vat since 2007. Not very clear of charging the output element of vat. what about this debt arrangement. Can it be spread over a period of 3 years. can they agree on this.
Expert:  Sam replied 2 years ago.
Hi Thanks for your response So why did they not charge VAT? As this is Vatable supply??? Did they not account for the VAT charge (Input) on the VAT returns - If not how was this missed ?And HMRC will not accept a 3 years payment plan - at best 1 year but I imagine they will try and bring this down to 6 months - Thanks Sam