Managing VAT in the EU
Discussion
If I, as a business, buy goods in another EU country, for use/resale in the UK, how do I manage the VAT?
In Germany, for example, general goods attract 19% and food etc attract 7%.
Surely HMRC won't be too happy if I reclaim those figures, which both exceed UK rates, as my input VAT claim. Equally, I can't reclaim the VAT from the point of purchase, as the goods would have to leave the EU to do that.
How does it work?
In Germany, for example, general goods attract 19% and food etc attract 7%.
Surely HMRC won't be too happy if I reclaim those figures, which both exceed UK rates, as my input VAT claim. Equally, I can't reclaim the VAT from the point of purchase, as the goods would have to leave the EU to do that.
How does it work?
V8mate said:
In Germany, for example, general goods attract 19% and food etc attract 7%.
Do you know, I wouldn't eb surprised if that's what our next government might do to our own VAT to fill the hole - saying - 'parity with Germany' etc. None of them has ruled out VAT increases - watch this space...V8mate said:
AndyAudi said:
If you provide your German Supplier with a valid VAT number I don't think they will charge you VAT on their invoices.
I believe that's only possible if the goods are to be taken out of the EU. And even then, you are charged and then reclaim it.OK. I've found this on the BusinessLink website.
I'm considering sourcing stock from a German cash 'n' carry. They'll have a very standardised invoicing system at their checkouts and I can't imagine that they can switch to zero-rated and 17.5% ratings very easily (the product groups which attract various prevailing rates will be entirely different in Germany and the UK)
Do you think that branches of UK cash'n'carry businesses have the peculiarities of every EU member state, for every stock item they carry, fully loaded into their tills? I doubt it very much.
Note said:
For trade involving the movement of goods between two VAT-registered businesses in different EU countries, VAT is paid by the customer at the rate which applies in their country.
For example, if you acquire goods from a VAT-registered Spanish business you pay VAT at UK rates.
But what if the business isn't set up for international trading?For example, if you acquire goods from a VAT-registered Spanish business you pay VAT at UK rates.
I'm considering sourcing stock from a German cash 'n' carry. They'll have a very standardised invoicing system at their checkouts and I can't imagine that they can switch to zero-rated and 17.5% ratings very easily (the product groups which attract various prevailing rates will be entirely different in Germany and the UK)
Do you think that branches of UK cash'n'carry businesses have the peculiarities of every EU member state, for every stock item they carry, fully loaded into their tills? I doubt it very much.
rich1231 said:
You can buy VAT free if both parties are VAT registered in the EU. However the cost benfits you infer by your posts are null as you also cannot reclaim the VAT as it erm hasnt been paid anywhere.
If there was any inference, it was unintended. I'm simply seeking process rather than benefits.Have now found this page on the HMRC's site.
Just not sure how the wholesaler in question will manage it at their end. Their website does have a VAT-free scheme, but it only relates to goods leaving the EU (the same scheme people use at airports, effectively)
Am popping out there in a few weeks - nothing will beat actually asking them!
V8mate said:
I'm considering sourcing stock from a German cash 'n' carry. They'll have a very standardised invoicing system at their checkouts and I can't imagine that they can switch to zero-rated and 17.5% ratings very easily (the product groups which attract various prevailing rates will be entirely different in Germany and the UK)
Do you think that branches of UK cash'n'carry businesses have the peculiarities of every EU member state, for every stock item they carry, fully loaded into their tills? I doubt it very much.
Ah, if your supplier physically provides the goods at their till (and you ship back yourself) point of sale is in Germany & will therefore be subsect to VAT at appropriate rates in Germany.Do you think that branches of UK cash'n'carry businesses have the peculiarities of every EU member state, for every stock item they carry, fully loaded into their tills? I doubt it very much.
(I had assumed your German supplier would be supplying to you in the UK)
eta http://www.hmrc.gov.uk/vat/cross-border-changes-20...
Edited by AndyAudi on Friday 16th April 13:58
Gassing Station | Business | Top of Page | What's New | My Stuff