VAT on intercompany costs

truecockney
truecockney Registered Posts: 94 Regular contributor ⭐
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.

Comments

  • truecockney
    truecockney Registered Posts: 94 Regular contributor ⭐
    Many thanks.
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