Hi All,
We have a situation where sub-contractors are importing items that are attracting import taxes (duty) - the Contract is Option F
My question is about where in the calculation of the amount due does the import tax sit in the Sub-contractors valuation to the Contractor and subsequently in the Contractors Valuation to the Employer…
Does it form a part of the defined cost which would attract VAT and subsequently the Fee or does it sit outside of the defined cost as “other amounts to be to the Contractor” (or sub-contractor)
there seems to me to be a dilemma between what the Contract says and what the guidance notes say which I cannot get my head around… so hence I am hoping some of you have previously got your head around similar situations in the UK… to me it doesn’t seem right that a Fee is charged on a tax (it isn’t on VAT is it?) which it would do if it sat in the defined cost, but it is part of the cost of doing the work as the sub-contractor has to pay it… also would they charge VAT on the money they had to pay as an import tax? tax on tax again that doesn’t seem right although I know we have situations like that in the UK
Any help or guidance would be appreciated