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Transfer pricing & VAT

Hey

I have a question with regards to TP and VAT.

Company X owns companies A & B. If company A is VAT registered and buy raw mats and converts them to finished goods, can company A transfer those goods at marginal cost to company B without charging VAT as company B is not VAT registered?

Both companies are in the UK.

Thanks.

Comments

  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I think that vat has to be charged unless they are part of a vat group
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    I think that vat has to be charged unless they are part of a vat group

    I believe thats true.

    Although if company B is vat registered is can reclaim the vat.
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