Accounting · Value Added Tax (VAT)
Marina is a UK VAT-registered trader making only standard-rated supplies. She purchased goods worth £10,000 (VAT-exclusive) from a trader situated outside the UK. Under the destination principle and post-Brexit UK VAT rules for imports, reverse charge or import VAT and corresponding input tax reclamation apply. What is the net financial impact on Marina's VAT position submitted to HM Revenue and Customs (HMRC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1£500 to pay to HM Revenue and Customs
- 2£2,000 to reclaim from HM Revenue and Customs
- 3£2,000 to pay to HM Revenue and Customs
- 4£0 net effect due to simultaneous declaration of import/output VAT and input VAT recovery✓
Correct answer
£0 net effect due to simultaneous declaration of import/output VAT and input VAT recovery
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