Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Small and Medium Enterprises Assurance Manual

HM Revenue & Customs
, see all updates

Checks on zero rating and outside the scope for outputs: importations of goods not for business purposes

If imported goods are not wholly owned by the importer and the purposes of their importation includes a private one (for example, other than a business use either by the importer or by the person having whole or part ownership of the goods), VATA 94 s27 (1) provides that the tax payable is not input tax which may be deducted;

  • the effect is that importers of such goods are required to pay the tax due on importation without any corresponding input tax deduction;
  • normal assessment action should be taken in any case where it is found that such deductions have been made; and
  • if, under the provisions of Notice 702 paragraph 20, a claim for relief from double taxation is received the claim should be referred to VI-1.