§ Mr. Roweasked the Chancellor of the Exchequer (1) what proportion of the total revenue collected from charging value added tax on imports at point of entry will be repaid within three months on reclaims to registered traders;
(2) what percentage of the total revenue collected by charging value added tax on imports at point of entry he estimates will be repaid within the same month through reclaims to registered traders.
§ Mr. HayhoeThere is no system of repayment specifically for VAT on imports. Registered traders who incur VAT on imports may offset it against the output tax for which they are accountable under the same conditions as for the tax they incur on their purchases within the United Kingdom. The net tax due is payable to Customs and Excise quarterly, but, if the trader is regularly entitled to credits of tax, these may be claimed monthly. While a precise breakdown is not available, it is thought that something of the order of a tenth of the VAT on imports by registered traders is paid by traders who make their returns monthly; the remainder pay quarterly.
§ Mr. Roweasked the Chancellor of the Exchequer how much revenue he expects to collect in the first full year of operation of value added tax collection at point of entry imports.
§ Mr. HayhoeAbout £10 billion.