The WMS when linked with Vision Bond provide duty deferment account handling facilities, the contents of this page provide guidance and overview on how the deferment system operates.
Further Reading
If you would like to learn more about how to setup various aspects of deferments there are some links below:
Deferment Form and the information contained see Deferment
How to setup or create a Customer then see the Customers page
https://visionsoftware.atlassian.net/wiki/spaces/VW/pages/edit-v2/622985284#Further-Reading
The system holds 4 types of Duty Deferment accounts
HMRC issued Warehousekeeper Deferment account (“Warehousekeeper”).
HMRC issued Duty Deferment account for a stock holding Customer (“DefermentStk”).
Warehousekeeper issued Cash Deferment account (“Cash”).
HMRC issued duty Deferment Account for a non-stock holding Customer (“DeferredNS”).
In order to charge Duty each stock holding account must have either an HMRC issued Deferment .account or a Cash Deferment (issued by the Warehousekeeper).
You must specify a Deferment account when you setup a stock holding account.
The Customer being setup must be shown as the Stock Holding Customer on the account setup.
The extract comes from the main section (see the (Customers) Deferment Maintenance Screen for more information.
Warehouse keeper
The Warehouse Keeper account and information are held at the Site level, this is used to facilitate the payment of “Cash” accounts using the “Warehousekeeper” Deferment account, when a transaction is entered in the bond transaction table to provide this information within the transaction.
Deferment Stock
Where a customer has their own HMRC issued deferment and they are a stock holder then they should be entered into the deferment screen as the “Deferment Owner”.
It is important that the VAT number and EORI are exactly the same as the customer setup.
If there are any differences then ACQUISITION VAT will not be possible.
Cash
Where a stock holding customer does not have a deferment account then the warehouserkeeper may offer this facility, when you setup a cash deferment customer you need to ensure that the “Cash Deferment” box is ticked.
The customer will then be provided with a unique number for their deferment which will be prefixed with the company code.
Again this customer code would be entered into the Deferment owners section.
DeferredNS
This is a different type of deferment account, whereby the deferment holder has provided authority for another of the warehouses stock holding customers to charge to their deferment
This type of deferment holder is added onto the system but they would not have any customer codes showing in the Deferment Owners section
Deferring of Duty to Any Other Account
This is only possible when the duty deferment holder (whether cash or HMRC issued) has provided the required authority to the stock holding customer to charge their deferment.
This is done by the receipt of a C1207N or C1207S form which is then entered into the lower section of the deferment maintenance page, this section is called "Customers using the Deferment”.
When an order is entered onto the system only those authorised deferment accounts are shown to the user as potentials to charge the duty to.
Acquisition VAT
When the stock is receipted into the warehouse we take note of the stock holding customers VAT and EORI numbers.
When an order is placed if the authority has been granted to charge any other deferment then we record the VAT and EORI numbers of the customer paying the duty.
ONLY if the numbers agree between the stockholder AND the deferment owner then ACQUISITION VAT is applicable.
Value for VAT
All UnderBond movements of stock require a Sales Order value per case to be entered.
This is also true for all Duty Paid orders where the Duty is Deferred to anybody other than the stock holding Customer.
The stock holding Customer has to declare the price they sold the goods for and this is then used as the value for VAT on the HMRC Declaration.
In a normal sales operation Customer, A sells to customer B and then customer B removes the goods from the warehouse and pays the duty.
In this standard scenario the transfer of stock from customer A to customer B is a sale and as such the value of the stock is likely to increase (customers always sell for a profit).
The system ensures that when duty is deferred to a third party that the value of the sale is used for the payment of the VAT element and that acquisition VAT is also not applicable for the order.
Workflow Diagram:
This related solely to the duty deferring to the non-stock holding customer
