Foreign VAT Reclaimed - HELLLP!!

ereid

Please can someone help with a new conundrum, I have reclaimed VAT from a few EU countries, Belguim, Germany and France. I have it as Miscellaneous Income at the year end, not sure where it should be and running out of thinking time.

Please can a MIP help?

Thanks in Lieu of help

coojee

Are you referring to the refund of import VAT that's paid when goods are imported? Although there shouldn't be any import VAT paid when you import from the EU. I can't see how else you could have a refund of VAT from EU imports. Are they actual receipts or just CR entries?

Monsoon

ereid wrote: »

Please can someone help with a new conundrum, I have reclaimed VAT from a few EU countries, Belguim, Germany and France. I have it as Miscellaneous Income at the year end, not sure where it should be and running out of thinking time.

Please can a MIP help?

Thanks in Lieu of help

I'm not 100% on this one but I'd post it to net off against the original expense, as currently the original expense is showing net+VAT, but the VAT's been refunded.

Misc income isn't the end of the world if it stays there but I think matching it to the original expense is better.

ereid

Reclaimed VAT

Thanks to both of you, the VAT is NOT on imported goods and falls outside the UK vat return. It is on VAT incurred on purchases of fuel in the named countries so around the houses we go.

My safe bet is to consider offsetting against the original expense which is also a Cost of Sales expense.

Comments most welcome, I would hope to find a haulage company with a similar dilema and solution but theres a big hope!

coojee

Where did you post the original expense when you paid for the fuel including the VAT? Did you DR it all to fuel or did you DR the VAT part to the VAT account? Wherever you put the original DR is where you need to post the CR of VAT received.

Vonni

Am I being stupid here? I'm sure you cannot reclaim the VAT on foreign fuel purchases so this should be part of the cost of sale. Unless I'm completely missing something are there special rules for hauliers?!?

If you are a UK business purchasing goodsfor business use or resale and they are invoiced to your business there should be no VAT charge from the EU customer as you will provide your UK VAT number to EU suppliers. Import of goods from other countries may involve an agent who will allow you to use their VAT deferrment account and you mayen reclaim the deferred VAT on you return if you have the supporting VAT documentation. Alternatively businesses buying 'services' from other EU countries need to apply the reverse VAT charge which is also included on the VAT return.

Any further comments on this would be greatly appreciated.

Y

Monsoon

Vonni wrote: »

Any further comments on this would be greatly appreciated.

Y

There's something different that isn't the usual reverse charge thingamajig. I think non-VAT reg businesses can reclaim VAT paid in EU by some other claim thingy. You can see I've researched this one a lot! Also if its goods bought abroad and not imported, the reverse charge doesn't apply and I think there is a mechanism for reclaiming this tax too.

Ereid, on your further information, I'd be happy netting it off against the original cost.