EU not EU VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Please i need help - i dont understand the concept of vat on imports and exports both within the EU and outside the EU. My tudor explains really quickly in class and then im lost again!
:roll:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EU not EU VAT

    Hi

    Is there anything specific you need to know?

    Generally you wouldn't pay any VAT on purchases from other EU and non-EU members. However, on the VAT form there is a box where you have to put the amount of VAT that would be paid on these goods if they were subject to VAT.

    Example:

    You purchase a total of £100,000 worth of items that would be standard rated in normal circumstances you would have to declare £17500 VAT due on EU imports.

    You would add the VAT figure from the above to the VAT on purchases figure, thus claiming it back and therfore not paying it

    You wouldnt charge VAT on invoices to EU and non-EU members, however, in the case of EU customers you should have a record of their VAT number.

    Hope this helps.

    Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EU not EU VAT

    In my organisation the policy is simple: no VAT to or from the rest of world, send copies to central finance office!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EU not EU VAT

    What would the position be if you sell to someone say in germany who is not registared for vat? does it make any difference?

    Or if you sell something that is zero rated in the UK but is vatable in a non eu country and you import from them, do you have to pay vat to customs? is it any differet whether in EU or outside?

    Tina
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EU not EU VAT

    When we are a third party, simliar to your germany import post, some disbursements are charged to us with VAT added on when normally they are a non-vatable disbursement. They can do this because they are providing a service in passing the disbursement on to us. So i am guessing with the VATable import from Germany which you will pass on, you are in some way providing a service and therefore you can charge VAT...

    The following link takes you to the HMCE web page giving you the format of VAT registration nos. for the member states:

    http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_001721&propertyType=document

    The following link enables you to check whether the VAT registration no. is actually valid:

    http://ec.europa.eu/taxation_customs/vies/en/vieshome.htm

    Hope this helps - PS, confirmation may be needed on my VAT thoery explained above, however that's what happens in the world of solicitors! cheeky sods
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:EU not EU VAT

    Thank you i shall have a look.

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