RRP for supplies to EU, VAT question

Antoinnette
Antoinnette Registered Posts: 118 ? ? ?
Hi there,
I have got a client who exports to the EU and other parts of the world. I am just in the process of registering them for VAT but in the meantime. They have made a sale to customer in Germany and wanted advice on how to calculate the RRP as they give this to each client. The way I understand it although the eport of the goods itself will be zero rated as its in the EU if she gives them an RRP she will have to include VAT at the German rate on the marked up price.
So for e.g the Cost of Sale is £100, mark up is 5% so its £105 net plus 19% of VAT (German rate for 2013). So the RRP for the customer will be £124.95
Is this the right way to do it? Any help will be really appreciated.

thanks

Comments

  • reader
    reader MAAT, AAT Licensed Accountant Posts: 1,037
    Hi there,
    I have got a client who exports to the EU and other parts of the world. I am just in the process of registering them for VAT but in the meantime. They have made a sale to customer in Germany and wanted advice on how to calculate the RRP as they give this to each client. The way I understand it although the eport of the goods itself will be zero rated as its in the EU if she gives them an RRP she will have to include VAT at the German rate on the marked up price.
    So for e.g the Cost of Sale is £100, mark up is 5% so its £105 net plus 19% of VAT (German rate for 2013). So the RRP for the customer will be £124.95
    Is this the right way to do it? Any help will be really appreciated.

    thanks

    I got the same £124.95 as you based on the numbers/rates that you have quoted.

    The VAT dispatch (sale to EU) will only be zero-rated if your UK client can get a VAT-registration number from their German client (and then an ECSL will also have to be done as well). If the dispatches are over £250,000 an intrastat declaration will also have to be done.
  • Antoinnette
    Antoinnette Registered Posts: 118 ? ? ?
    Thanks Reader.
    I must say its always very satisfying when someone else gets the same answers as me:thumbup1:
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