VAT on intercompany costs

truecockneytruecockney Feels At HomeRegistered Posts: 93
I have a question that I hope someone can clarify.

I have an instance whereby a UK company incurs a charge that needs to be split across multiple subsidiaries (each is in a different country so no VAT group). VAT has been charged on the full invoice. When transferring relevant costs to each entity via intercompany journals, does the VAT also need to transferred as if this is non-reclaimable, or can the VAT be fully reclaimed in the UK?

This relates to a final settlement of contract in the UK entities name.

Best Answer

Answers

Sign In or Register to comment.