The Childrenswear Association (NCWA) has been made aware that post-Brexit, import VAT has been charged on some children’s clothing and footwear that should have been zero-rated. It is, therefore, highlighting the following statement it received from HMRC.

“The same rate of VAT applies for imported children’s clothing as applies for domestic purchases. If the articles meet the conditions in Notice 714, VAT should not have been charged.

“If you are not using Postponed VAT Accounting, you are still able to recover the overcharged VAT as input tax (box 4) on your VAT return.”

NCWA is inviting members to highlight any problems they are encountering so that it is able to refer them to the appropriate authorities.

For further information on the NCWA, including benefits of membership, please click here. To learn more about the NCWA’s newly launched digital B2B Marketplace for childrenswear sales, please click here.