VAT reclaim on delivery charges

[Stones]

My understanding of the rules is as follows:

 

The VAT incurred on delivery charges listed on main invoices for eligible goods are part of the value of the goods for the purposes of the Scheme and can be refunded.  Separate invoices for transport or delivery aren’t eligible for refund.

 

The problem I have, and others who live in more remote areas often encounter, is the additional delivery charge, or we can only deliver to the nearest port.  In that circumstance, i have no option other than to use a follow on haulier.  Just wondering if anyone has tried / had any success in reclaiming such additional delivery / transport costs?  

 

I'll give HMRC a call in the morning to ask, but my current thought is even if they do say no at this point, it may well be worth submitting the invoices with an explanatory note in the hope there is some discretion or a derogation open to HMRC for island communities - i.e. the only way we could get the goods delivered was to pay for additional transport / haulage.

[warby]

If you can get the supplier to pay for all the additional transport and then the supplier can include that value on their invoice to you.

[Temp]

Not the official site but...

 

https://www.homebuilding.co.uk/maximise-your-vat-reclaim/

 

Quote

Examples of the materials you can claim VAT back under the DIY Housebuilders’ scheme:

• snip
• Delivery charge included on an invoice for materials

Examples of materials you cannot claim VAT back on include:

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• Delivery costs, when separately invoiced by a courier

 

 

The HMRC has no "discretion" and I've seen reports that they are imposing tougher penalties on even minor errors in VAT reclaims. 

 

Edited August 26, 2016 by Temp