HMRC have published Revenue & Customs Brief 7 (2022): ‘Claiming a repayment of overpaid import VAT on the importation of dental prostheses into the UK’, following a backdated VAT exemption being introduced.

Background

It was announced on 27 October 2021 that the import of dental prostheses would be Exempt from VAT when imported by, or behalf of, dentists or dental care professionals.

This measure was backdated to 1 January 2021 and included in Finance Act 2022, which received Royal Assent on 24 February 2022.

Affected importers can now reclaim overpaid import VAT on imports in the period 1 January 2021 to 27 October 2021.

How to claim

If postponed VAT accounting was used to account for the import VAT:

  • The Correction should be made on the VAT Return for the current period where amendments are either: 
    • £10,000 or less.
    • Between £10,000 and £50,000 and less than 1% of the outputs in box 6 on the current VAT return.
  • In all other cases, Form 652 should be completed, or a formal notification made to the HMRC VAT Error Correction Team.
  • The value of claims should be reduced by the amount of import VAT previously reclaimed as input tax.

If postponed VAT accounting was not used and import VAT was paid when making the customs declaration:

  • Complete Form C285 to claim repayment of the overpaid import VAT.

When making claims:

  • Include a signed declaration and quote Revenue and Customs Brief 7 (2022).
    • The declaration should be retained as part of a business’s VAT records to produce to HMRC on request.
  • Dental professionals should include the following wording in their signed declaration:
    • ‘I am a dentist/dental care professional registered with the General Dental Council and I am importing for use in my dental surgery.’
  • Importers on behalf of dental professionals should include the following wording in their signed declaration:
    • ‘I am importing the dental prostheses on behalf of [dental professional’s name] who is a dentist registered with the General Dental Council/dental care professional registered with the General Dental Council for use in their dental surgery.’

Useful guides on this topic

Health and welfare: VAT
Reduced rating, zero-rating and VAT exemption can apply to various services relating to medical care, health and welfare. This guide looks at supplies of medicines, supplies of goods and building works to disabled persons and charities, medical care, and welfare services.

Correcting VAT errors
What are the VAT error correction time limits? Can you correct errors through the VAT return? Do you have to notify HMRC?

Partial exemption & input VAT
How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules?

How to claim back import VAT and duties
Buying goods from Europe? Now that the UK has left the EU you may well now be liable for VAT and customs duties. If your imports are returned or import taxes have been applied in error you can claim a refund. 

External links

Revenue & Customs Brief 7 (2022): ‘claiming a repayment of overpaid import VAT on the importation of dental prostheses into the UK’ 

Revenue and Customs Brief 14 (2021): Changes to the VAT treatment of importations of dental prostheses into the United Kingdom


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