I have a client who I am confident has breached the DSR Thresholds in most of the European countries. Thinking on the issue as it stands I am expecting that they will need to correct their affairs. However, what is the procedure in completing a DSR VAT Return for another EC country?
My issue is:
Outputs/Inputs declard on UK VAT Returns.
Expect that Client will need to make correct declarations and revised all UK VAT Returns.
Calculating what Output VAT would be due to each EU Country would be simple enough. But what about the Input VAT? Is the Input VAT applicable to the Sales in other EU Countries recoverable in the UK, or is it Outside the Scope and should actually be reclaimed in the country in which the respective sale is made? For clarification, the goods are delivered here to the UK and then sent via courier to the Customer.
Any input gratefully received!!!