On 11 April 2019, HMRC published Revenue and Customs Brief 2 (2019), in which it explains the correct treatment for the deduction of import VAT paid by a taxable person who is not the owner of the relevant goods.

The correct procedure is for the new owner of the goods to be the importer of record and reclaim the import VAT on the C79, in accordance with section 24, VATA 1994.

From 15 July 2019, HMRC will only allow claims for input tax deduction made using the correct procedure. This allows a transitional period for businesses to make any necessary changes to ensure the correct procedure is followed going forward.

A copy of Brief 2 (2019) can be viewed here.