I am doing my first vat return, and claiming purchase VAT on items I held in stock at the date of registration.
Can I claim foreign vat charged to me from other countries within the EC?
Dan
Replies (6)
Please login or register to join the discussion.
Give EC supplier you GB VAT and goods can then zero rated
Agreed that EC VAT can not be reclaimed on GB VAT return.
If the EC VAT is on the import of goods to the UK you zero rate the supply.
If you give your EC supplier your GB VAT number they can then zero rate the supply and so you save the EC VAT. You have to account for the EC VAT on your GB VAT return by entering the notional amount of VAT on both sides of your VAT account/return. In Box 2 and Box 4 on your return.
For example if you purchased £10k of goods from France you would entered £1,750 in box2 and add the same £1,750 to the total in box 4 and so no cost to you.
OK for the future, but ...
... Dan had already imported this stock before registration so he did not have a VAT number to give to the supplier.
Do a VAT reclaim from the EU country
As you cannot reclaim the VAT thru' your UK return could you make an application to the VAT department in the EU country?
Yes, but not for these goods.
Dan,
You can reclaim VAT incurred in another EC Member State by way of an 8th Directive Refund Claim. However, such claims specifically do not apply to goods that have been dispatched from the country of supply.
Unfortunately, you will not be able to recover the VAT you have incurred on these goods.
Regards,
Paul Taylor
Senior VAT Consultant
Dains