Trusted VAT Services

VAT (value added tax).

VAT is an indirect consumption tax charged on goods and services at each stage of the supply chain where value is added.

Import VAT is imposed on assets crossing the border into a customs territory.

Import VAT is treated as a ‘duty of customs’ as it is managed by customs officers, whereas VAT incurred inside the territory, either the UK or the EU, is managed by local tax inspectors.

VAT advice can be provided by Martyn Fiddler tax and specialist advisory professionals and our services include:

• UK and EU VAT advice;
• formal VAT opinions;
• customs duties guidance.

This can lead to some confusion for asset owners regarding some of the principles of VAT reclaims between the two departments.

Failing to note and comply with the tax rules for import could result in an unnecessary 20% VAT charge plus possible additional penalties.

We would always recommend that owners or operators bringing their aircraft or yacht into the UK for the first time seek professional advice from chartered tax advisors. It is important to get it right!

Getting it wrong can be costly, cause unnecessary delays and deprive owners of their asset for significant periods of time.