If I buy construction vehicles from our parent company, based in Germany, to be hired out in the UK, what cost considerations are there? Such as import duties and VAT.
The vehicles will be purchased at a market value.
Anon
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Within EC = The Single Market
Transactions within the "Single Market" (ie. within the EC) are relatively hassle-free from a duty and VAT viewpoint:, so when goods are sold from one EC country to another :-
1) On most goods there's no import duty
2) The seller quote's the buyer's VAT registration number on the sales invoice and chaerges no VAT on the invoice
3) The buyer charges itself VAT (using box 2 of VAT return) on the goods acquired and reclaims the VAT (using box 4 of the VAT return)
For further information refer to HMRC (VAT) publication 725.