Reclaiming VAT in Europe

Reclaiming VAT in Europe

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Hi All,

A client (UK registered company) made some stock purchases abroad which are being resold in UK and the purchase price included VAT that was paid to the Dutch tax authority. Clearly this VAT cannot be reclaimed locally. Is there any other way of reclaiming this VAT?  I have heard of a Refund Scheme but didnt think it would apply as the items purchased are for resale.

Does anyone have experiene here that can advise?

Thanks guys.

Replies (2)

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By DMGbus
10th Jul 2012 08:55

Dutch VAT wrongly charged

The usual proceedure for a UK trader to bring goods into the UK from a Dutch trader is as follows:

1.  UK trader provides UK VAT number to Dutch trader

2.  Dutch trader obtains and retains evidence that goods have left The Netherlands

3.  Dutch trader quotes UK trader's VAT number on invoice (prefixed GB) and does NOT charge any VAT

4.  Dutch trader includes the sale on his EC Sales List

4.  UK trader "charges himself" VAT on the goods from The Netherlands by an entry in Box 2 on the VAT return, reclaiming such VAT in box 4 on the same VAT return, providing that the goosds in question are fully used for UK trader's business and eligible for VAT recovery

 

 

Thanks (1)
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By khalm0
10th Jul 2012 15:54

Thanks for the response. I understansd how the process should work but unfortunately this time it did not work like so. I need to clarify but the company may not have been vat registered when the transaction occured and registered shortly after.

 

Is there no other way of reclaiming this?

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