VAT treatment

Discussion in 'Accounts & Finance' started by Red Wood, Oct 9, 2020.

  1. Red Wood

    Red Wood UKBF Regular Free Member

    491 54
    Can I confirm the below...

    Case 1
    Customer in Ireland
    Delivery in France
    *0 Rated I'm assuming

    Case 2
    Customer in UK
    Delivery in Spain
    *Vat charged at the standard rate

    Case 3
    Customer Germany
    Delivery UK
    *Vat charged at the standard rate
     
    Posted: Oct 9, 2020 By: Red Wood Member since: Jan 14, 2014
    #1
  2. STDFR33

    STDFR33 UKBF Big Shot Free Member

    4,506 1,193
    Maybe.

    Maybe not.
     
    Posted: Oct 10, 2020 By: STDFR33 Member since: Aug 7, 2016
    #2
  3. Red Wood

    Red Wood UKBF Regular Free Member

    491 54
    Can you expand please.

    All things being equal, customers are vat reg'd businesses within their respective countries, pre end of transition period.
     
    Posted: Oct 11, 2020 By: Red Wood Member since: Jan 14, 2014
    #3
  4. lesvatadvice

    lesvatadvice UKBF Regular Free Member

    788 122
    Where a UK business sells to registered businesses in other EU MSs, sales are zero-rated.
    You need evidence of removal & delivery; customer's VAT number to be shown on your invoice; and submit EC Sales Lists.
     
    Posted: Oct 12, 2020 By: lesvatadvice Member since: Jul 7, 2011
    #4
  5. Red Wood

    Red Wood UKBF Regular Free Member

    491 54
    I am aware of the above, my question is how is VAT treated if we are supplying a UK VAT reg'd business but goods are delivered in another EU country.
     
    Posted: Oct 12, 2020 By: Red Wood Member since: Jan 14, 2014
    #5
  6. Spur Support Services

    Spur Support Services UKBF Contributor Free Member

    68 13
    If you are invoicing the goods from a UK VAT registered business, and your customer is VAT registered elsewhere in the EU, then the invoice will be raised on a "reverse charge basis".

    This means that you apply zero VAT, but the customer accounts for their own country's VAT on their VAT return (sort of.. as if they had sold it to themselves).

    An invoice will need to be raised, stating that the reverse charge basis has been applied,
    - you should ensure the the sale is reported as an EU sale on your VAT return,
    - your customer will need your VAT number prefixed with GB,
    - you will need your customer's VAT number, prefixed with their country code and
    - you need to submit an EU Sales Report to HMRC even if these goods never actually passed through the UK (certain entities can apply to submit on a simplified basis).

    Simples.......
     
    Posted: Oct 12, 2020 By: Spur Support Services Member since: Aug 21, 2020
    #6
  7. Red Wood

    Red Wood UKBF Regular Free Member

    491 54
    Yes thanks, I am up to date with that as we do it very regularly, my question is if the customer is vat reg'd in the UK but we deliver goods to another EU country on their behalf, marked for their attention for installation on a site by them.
     
    Posted: Oct 12, 2020 By: Red Wood Member since: Jan 14, 2014
    #7
  8. Scalloway

    Scalloway UKBF Legend Free Member

    16,477 3,486
    Posted: Oct 12, 2020 By: Scalloway Member since: Jun 6, 2010
    #8
  9. STDFR33

    STDFR33 UKBF Big Shot Free Member

    4,506 1,193
    Yep.

    Then it’s up to them whether it’s distance selling or a despatch.
     
    Posted: Oct 12, 2020 By: STDFR33 Member since: Aug 7, 2016
    #9
  10. AbsoluteVAT

    AbsoluteVAT UKBF Contributor Free Member

    54 10
    If the UK customer is also VAT registered in the member state of delivery, it may well be possible to make an intra-community dispatch to them.

    If that customer is then supplying the goods with installation to another customer, they will need to consider the VAT treatment of that supply.
     
    Posted: Oct 13, 2020 By: AbsoluteVAT Member since: Jun 2, 2016
    #10