Export VAT dispute

[t1grm]

I just ordered some doors and skirting off a UK company on the internet for export to Malta. Before I placed the order I checked if they could supply ex-VAT for export, using my own forwarding agent, and they said I would have to pay the VAT when placing the order but they would refund the VAT once I provided proof of export to Malta. I have used this process with other online suppliers before.

 

I placed the order and paid the UK VAT, the goods were received in Malta and I have also paid VAT in Malta. I have sent the customs invoice from Malta to the UK supplier as proof of export but now they are refusing to refund the VAT. They say I will have to claim the VAT back myself which I can't do as I am not VAT registered. 

 

So now I have paid double VAT of about £500 each in UK and Malta. I'm pretty sure the supplier is at fault here and doesn't know what they are doing. Other suppliers have not had an issue doing this. The supplier is not very responsive and is now just ignoring my emails. I'm thinking of filing a small claim against the supplier but am not sure which legislation if any they are in breach of. Any thoughts?

[aaa577aaa]

I'm not from UK but this should be valid in general.

First of all you have not to pay the VAT 2 times...the correct behaviour should be, as a final customer (since you are not vat registered), you receive the invoice with the uk vat and you pay it to the seller, but it should be the seller that should pay the vat in Malta, acting as an importer. Then, the seller, and not you, can recover the import vat (paid in Malta).

But things were made wrong, so the seller should:

1. Issue a credit note to you for the amount of the wrongly invoiced VAT
2. Give back the money to you equal to the amount of the VAT
3. Declare the credit note on his UK VAT return to recover it from tis Country

No idea about a claim, may be not worth for that amount (£500).

An additional note: if in the customs bill it's you that appear as the importer (and more important in the invoice from the carrier that acted as the intermediary), the seller can't recover the vat. Documents were compiled wrongly. So it's like you bought something in uk and exported it to Malta. I think you can do nothing, sorry.

Sorry for what happened.

Edited June 8, 2023 by aaa577aaa

[t1grm]

I have filed a case on MoneyClaim Online for this and the seller has decided to defend the case.

The user guide states:

"If you want to proceed with your claim upon receipt of a paid, full, or part defence, you must notify the court by following the directions enclosed with the copy of the defendant’s response."

The defendants response just states their defence (which I disagree with). There are no further instructions.

The current status is DQ sent to <defendant name>.

Am I supposed to do something or do I just wait for now?

[dx100uk]

they should be filing their defence on MCOL.

if the status says DQ's sent out to you and them

simply fill yours out and send a copy to the court and one to the defendant (or their sols if they have one)

are you agreeing to mediation?

[Andyorch]

Use the following if they have not sent you a DQ by submitting the DQ you are informing the court you wish to proceed.

 

[t1grm]

Yes I would like to use mediation.

They have filed a defence online.

The current status is:

"DQ sent to <defendant>  on 7/7/23"

I have not been requested to return a DQ and it looks like the defendant has not returned their DQ yet.

what happens if the defendant disputes the claim but does not return a DQ?

Can I request a judgment and how long have the DQ request do I have to wait?

 

Filled out the N180 but it says:

Once you have completed this form, please return it to the court at the address shown on the form N149A - Notice of proposed allocation to Small Claims Track.

I don't have an N149A so where do I send it?