VAT

VAT

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Company A - Germany

Supplies Company B - US

Who in turn supplies Company C - UK (my client)

Goods move A - C

As far as I can see any VAT implications are down to A or B, and my client deals with any paperwork as necessary. Whether B is trading in tthe UK and needs to register for UK VAT is not our concern?

Any comments gratefully received.

Replies (4)

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By pipper01
07th Feb 2012 17:43

Triangulation

http://www.hmrc.gov.uk/manuals/vatsmanual/VATSM5245.htm

Hope the link works - in my opinion it's the US company that has the problem not your client.

Pip

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Euan's picture
By Euan MacLennan
08th Feb 2012 09:59

Agreed

If B invoices C without UK VAT, C should account for it as an acquisition of goods from another EC country (Germany) in Boxes 2 & 4 of C's VAT return.  If B invoices C with UK VAT added, it will be an ordinary input in Box 4.

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By User deleted
08th Feb 2012 10:16

Thanks guys ...

So my client has a VAT neutral entry.

Is the VAT based on the invoice value or the value on the shipping docs supplied by the fright forwarder?

From the SM5245 link, it would seem the bottom diagram applies, but with UK and French Co interposed and looks like the US company is a NETP and needs to register.

What is US companies place of supply, where customer belongs?

From my small fragment of the jig-saw it seems there are more and more US firms involved in Europe and quite possibly many are operating in ignorance of EU VAT rules and should be registered in the EU

 

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By Gretaj
10th Feb 2012 12:15

Suggestion

Hi there,

I would ask you to call the HMRC enquiry line and get the reference of your call and ask them this question.

I have heard of tax inspectors having different views/thoughts on how they treat this. And if they come over and see that you were doing it one way, when it should be another, it can cause problems.

Better be safe than sorry?

 

 

 

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