INS12705 - Indirect taxes: processing issues: VAT on imports and Form C79
When goods are imported for home use, any VAT on imports that is paid on entry can normally be reclaimed as input tax on the subsequent VAT return. Form C79 is automatically generated when VAT is paid on imports.
What is a form C79?
C79 is issued for input tax deduction purposes and is accepted as evidence to reclaim VAT in a similar way to a purchase invoice. It is a monthly import VAT certificate for VAT paid on imported goods and goods removed from a warehouse, which is eligible to be reclaimed on a VAT return.
In the absence of a C79 to evidence payment of VAT, commercial documentation may be accepted to support claims for input tax, provided it provides all the necessary information.
How is form C79 produced?
When goods are imported or they are removed from a warehouse for home use, an import entry (Form C88) is completed either manually or electronically, and entered onto the Customs Handling of Import and Export Freight (CHIEF) computer system,
From the VAT details provided on the import declaration a C79 is generated monthly to the importer of the goods.
Normally the IP should be entitled to reclaim inputs shown on the C79; unless the IP informs us that the C79 does not relate to the insolvent business, no further enquiries need to be made. (It is possible that as a result of a change of name, the C79 has been sent to an insolvent business in error).
- the use of C79s as evidence for deduction of input tax, should be referred to CT&VAT Inputs Team, Parliament Street, London.
- Import Vat should be referred to the Customs & International team at Southend.
- lost or duplicate C79’s should be directed to the Microfilm team at Southend
- why a C79 has not been issued are dealt with by the Post Clearance Amendments Team in Salford.