VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi

Can someone pls tell me where I can find out how vat is applied to a company who has both EC Sales and Worldwide sales. I don't understand which sales figure is used in the vat return.

Are you paying vat on the sales worldwide even if you don't charge it? Sorry if this seems like a basic question but I can't get my head around it.

I've tried the hmc.gov website but it was of no use in this respect. Where else or who else can explain it pls?

Thanks
nacinmac

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT

    the supply of goods to non EC countries will be zero rated. Supplies to EC countries, assuming the recipient is VAT registered, are sold net of VAT. You account for the VAT element as an input & output on the VAT return.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT

    Goods sold to customers in other EC countries are also zero rated but only if:

    1) The customer is registered for Vat in another member state and gives the UK supplier his VAT registration number;

    2) The supplier shows his own and his customer’s VAT registration number on the sales invoice, both prefixed by the two-letter country code (For UK the code is GB);

    3) The goods are physically removed from the UK to a destination in another member state; and

    4) Within three months of the sale, the supplier obtains and keeps documentary evidence to prove the goods have been removed to another member state.

    You should also note that there is a danger that the VAT registration number provided by the customer may be invalid and so you should verify this with your local VAT office and keep a record on file for reference and evidence of work on your part.

    The total EC sales for tax period (including those on which VAT has been charged for non VAT registered EC customers or for in valid VAT numbers) are entered in BOX 8 of the Return and these totals are used by Tariff & Statistical Office to determine whether monthly dispatches SSDs should also be completed.

    If you want more details on EC sales, see Notice 725 Sections 2 and 3.

    http://tinyurl.com/bcjls

    The above link takes you to Customs download website.


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT

    Thanks to you both who responded to my question. It has certainly hepled and I now know where to look for furhter info. Thanks again.

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