Overseas VAT - Again!
JamesB
Registered Posts: 51 Epic contributor 🐘
So sorry if this has done the rounds before!
1) UK Ltd co (vat reg) purchases goods from German Vat reg co.
Should German company exclude VAT as it is tax neutral zone and UK company put VAT in box 2 and 4 on VAT return at uk VAT rate?
If German co have included German VAT I assume Ltd co can request credit note for this amount?
2) Uk Ltd co (vat reg) purchases goods from Chinese company. Chinese company invoice them from China and do not include vat. Goods are dispatched from the UK though.
How does this work! are there any vat implications here?
I haven't been lazy, have looked on HMRC website but it is sooo user un-friendly and is certainly not clear as mud :-(
thanks guys,
J
1) UK Ltd co (vat reg) purchases goods from German Vat reg co.
Should German company exclude VAT as it is tax neutral zone and UK company put VAT in box 2 and 4 on VAT return at uk VAT rate?
If German co have included German VAT I assume Ltd co can request credit note for this amount?
2) Uk Ltd co (vat reg) purchases goods from Chinese company. Chinese company invoice them from China and do not include vat. Goods are dispatched from the UK though.
How does this work! are there any vat implications here?
I haven't been lazy, have looked on HMRC website but it is sooo user un-friendly and is certainly not clear as mud :-(
thanks guys,
J
0
Comments
-
So sorry if this has done the rounds before!
1) UK Ltd co (vat reg) purchases goods from German Vat reg co.
Should German company exclude VAT as it is tax neutral zone and UK company put VAT in box 2 and 4 on VAT return at uk VAT rate?
If German co have included German VAT I assume Ltd co can request credit note for this amount?
2) Uk Ltd co (vat reg) purchases goods from Chinese company. Chinese company invoice them from China and do not include vat. Goods are dispatched from the UK though.
How does this work! are there any vat implications here?
I haven't been lazy, have looked on HMRC website but it is sooo user un-friendly and is certainly not clear as mud :-(
thanks guys,
J
Re Point 1: I would agree with everything you have said. In addition, I would also say that you should declare the purchase price of the German goods in boxes 7 and 9.
Re Point 2: I'm assuming the goods were "made in China" (probably very cheaply because labour costs are lower there) and then imported into the UK and 'warehoused' until they are finally sold/dispatched. When goods are removed from the warehouse (after being imported from outside the EC) import VAT is due- so I'm assuming the UK Ltd co is paying the import VAT and getting a C79 (a certificate that proves the UK Ltd Co has paid import VAT and can claim this back in box 4 of the VAT return; see sections 1.5 and 2.3 of VAT notice 702).0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership