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HMRC internal manual


HM Revenue & Customs
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Onward supply relief (OSR): verification of goods imported for onward supply to another member state: what if there is no evidence of onward supply

Where the importer/agent is unable to produce on demand commercial evidence of onward supply to another EC country, ask for details of the disposal of the goods.

a. If the goods are still on hand and the one-month time limit has not yet expired

There should be satisfactory evidence that the goods were imported in the course of an onward supply. If within one month of the importation no such evidence is available the conditions of the relief have been broken, and import VAT is due (see IMPS07580) You should advise the trader of this and tell him that when he does make a supply of the goods he should charge supply VAT or zero-rate the goods in the course of a supply under intra-EC rules, as appropriate.

b. If the goods are still on hand more than one month after importation

Unless there are exceptional reasons for the delay in onward supply - in which case see IMPS07560 of the relief have been broken, and import VAT is due. You should take action as at a. above.

c. If the goods are not on hand

In the absence of satisfactory evidence of onward supply the conditions of the relief have been broken and import VAT is due (see IMPS07580). In these circumstances you should also consider the possibility that a domestic supply may have taken place on which VAT should have been charged and accounted for in accordance with the normal rules.