EU VAT reclaim

[Sam2710]

Hi , please can I get advice on the below matter

I am an Accountant and one of my client (a company in the UK) wants to import products from a country outside the EU into a EU country and process same in a factory in the EU and bring it down to the UK. My client will pay Customs duty and VAT in the EU country when the goods are customs cleared in the EU country. What is the current process to reclaim the input VAT paid in the EU Country. If they pay VAT under their UK EORI number in the EU country can they reclaim the VAT paid, through their UK VAT return or should they be registered for VAT in the EU country or could they have a EU EORI number to reclaim VAT through the UK vat return.

Though the VAT amount will be significant the activities will be a very few in a year hence have to keep the admin work to a minimal cost.

 

[AbsoluteVAT]

Hi Sam

If import VAT is incurred in the EU country of import, this will not be recoverable through the UK VAT return. If the goods once processed are moved to the UK, there will likely be a registration requirement in the country of dispatch. UK acquisition tax will then be payable through the UK VAT return when the goods arrive. The overseas VAT would then be recoverable through the local VAT return. You should also consider if any import VAT relief/suspension is possible.

Of course, the treatment may well change in a few weeks...!

Richard