VAT, self employed traded UE

[justina.b]

hi,
I have quastion: self emplyed (VAT reg) in UK buy goods in Germany (company A) and sell in Germany (company B) , the goods will go directly from A to B. What to do with VAT invoices... I am very confuse about VAT.

thank for your answer

[3pic]

Sounds like you are making taxable supplies in Germany in my opinion. If the goods never hit the UK shores, then you are certainly not making a taxable supply in the UK.

Its late now (getting tired) so will check tomorrow, but most EU countries have a simplification agreement where one VAT registered EU based business (ie, you in the UK), trades with another VAT registered EU business (the customer in Germany).

Generally speaking, you should be allowed to zero rate your UK invoice to the Germany end user and they will have to account for VAT at the German rate in their own country. If this was a German company supplying in the UK, they would need prior approval from HMRC's NETPU (Non-Established Persons Tax Unit) but most other countries aren't as fussy as the UK in requiring prior approval.

In terms of your invoices/supply. Can you confirm....is the supply/invoice trail as follows :-

1. Comany B orders goods from you.
2. You order goods from Company A
3. Company A delivers goods to Company B.
4. Company A invoices you in the UK or their supply (should be zero rated).
5. You invoice Company B for the supply of goods.

If you can confirm the above then that'll be great and I'll get back to you tomorrow.

[Gratis Guidance]

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[justina.b]

I confirm:

1. Comany B orders goods from you.
2. You order goods from Company A
3. Company A delivers goods to Company B.
4. Company A invoices you in the UK or their supply (should be zero rated).
5. You invoice Company B for the supply of goods.