VAT Exporting in EU Countries

[fudge01]

Hi

Problem:

Exporting goods from Germany to Spain, selling in Spain. Our limited company registered in UK and Vat Registered in UK.

1. Do we have to declare the 15% in the uk on the VAT return on the sale of goods in Spain?

2. Should we register for vat in Spain?

3. If in the future we import into UK, should we register for VAT in Germany to get the zero rated import tax?

thanks

confused.com!
:|

 

[Woodcrest Accounting Serv]

Try the business link website, there is some very informative advice on there

 

[yorkshirejames]

Hi

Problem:

Exporting goods from Germany to Spain, selling in Spain. Our limited company registered in UK and Vat Registered in UK.

1. Do we have to declare the 15% in the uk on the VAT return on the sale of goods in Spain?

2. Should we register for vat in Spain?

3. If in the future we import into UK, should we register for VAT in Germany to get the zero rated import tax?

thanks

confused.com!
:|

1 - what 15%? German VAT is 19%, Spanish VAT is 16% (I think) - which one you need to charge depends on a multitude of things.

2 and 3 - I do not of the top of my head recall what the VAT thresholds are in Spain and Germany but I believe Germany at least is rather low. It may be that you already need to register in both countries.

3 - I don't follow your point about importing into UK.

VAT is complex, particularly cross-border. I do think that you need specialist advice - which need not be expensive.

I have PM'd you my contact details - if you give me a call I will put you in touch with an excellent VAT expert I know (a British chap, now semi-retired in Spain).

Cheers
James

 

[Paul Kelly ICHYB]

Where is the transaction taking place? UK, Germany or Spain. This would probably drive the VAT conditions. It would also be useful to know if the goods originate from you in Germany or you are in the UK, buying from a German company

 

[profitxchange]

You might also try "uk trade invest" they are an advisory service for o'seas trade. they are free and can be helpful.

 

[3pic]

Hi

Problem:

Exporting goods from Germany to Spain, selling in Spain. Our limited company registered in UK and Vat Registered in UK.

1. Do we have to declare the 15% in the uk on the VAT return on the sale of goods in Spain?

2. Should we register for vat in Spain?

3. If in the future we import into UK, should we register for VAT in Germany to get the zero rated import tax?

thanks

confused.com!
:|

If the goods are held in Germany at the time they are supplied to custoemrs, then the Place of Supply is germany and you will likely have an obligation to register for VAT in Germany, depending upon your turnover/their VAT registration limit of around 12,500 euros (but check that figure).

So basically, wherever the goods are held at time of dispatch will determine which country's you need to register for VAT in.

If in future you wish to import from Germany into the UK (known as an aquisition) then both the German supplier and UK customer would need to be VAT registered in their respective countries in order to achieve the zero rating supply. If you are selling to indiviudal people rather than traders then the country who supplies the goods (Germany) woulod be liable to charge VAT to the UK customer, subject to that threshold level.

 

[Paul Kelly ICHYB]

If you are purchasing from Germany, with the sale to the UK business, and exporting direct to Spain, sold from the UK business, as long as everyone has local VAT numbers, I believe there is no real VAT obligation (i.e. payment) and local registrations will not be needed.

Intrastat will need completing

I am not an accountant, but have done a lot of inter EU busines (although not this type for a few years) and believe that this is how we did it!

 

[fudge01]

Thanks to all of you!!!

Ok maybe I should have explained it better!!

We (a uk registered company and uk vat registered) will be supplying "goods" from Germany to customers in Spain. I was told by the VAT office that if supplying goods between EU countries i.e. Germany to Spain there is no import duties ,???? but would have to declare on certain Boxes of the UK vat return the turnover of goods in the EU and will also have to do a Intrastat return should the amount exceed a certain amount.??

In regards to the UK Market, that is in a couple of years time should the germany to spain exporting take-off.

I am having conflicting suggestions that we should register as a business in Germany and in spain and get VAT registered in both! !?!? surely not!

 

[Paul Kelly ICHYB]

I believe you should only register in those countries if you are actively trading (buying and selling). As you are exporting from one and importing from other. there is no need!

However, for a definitive answer, ask an accountant!