porkpie
9th March 2009, 10:42
Hey,
I just sat down to do my VAT returns (for the first time/new company) and I have made alot of purchases from the EU. What VAT do I use? Theirs or the 15% UK one?
Cheers
Hey,
I just sat down to do my VAT returns (for the first time/new company) and I have made alot of purchases from the EU. What VAT do I use? Theirs or the 15% UK one?
Cheers
You are charged EU vat, then you can not claim vat via UK VAT return. You to use special directive called EU 8th directive to claim vat suffered in another EC country. Subject to conditions.
However, you need to provide your vat number to your supplier in order to zero rate your purchases. Then you have to deal these purchase a special mechanism called "Reverse Charge".
Have a look at vat notice 741 & 725.