ÑÇÖÞÉ«ÇéÍø

VAT paid or payable by a taxable person on the importation of goods is input tax if the goods are used or to be used for the purpose of any business carried on or to be carried on by him¹.

It follows that where a VAT liability is incurred by a warehousekeeper under joint and several liability provisions, the warehousekeeper has no entitlement to input tax recovery (see Associated British Ports²).

VAT paid or payable is not regarded as input tax if, at the time of import, the goods belong wholly or partly to someone other than the importer and they are to be used for purposes which include the private purposes of the importer, owner or joint owner³. A special claim for repayment may be made if this exclusion from input tax credit gives rise to a double charge to tax. For the repayment of tax in such circumstances, see V5.153.

For imported goods that are not declared for free circulation in the UK but are instead