Hi. Can you you please answer a question. A company is registered in the UK. In the last half a year part of the logistics operation has been transferred from England to Latvia (EU). There is a bank account in Latvia. Can we cash the returned VAT cheque into that account? Which bank would the Latvian bank need to contact in order to obtain the funds (Citi bank)? Thank you.
Replies (4)
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Your post is not clear.
1) is the returned VAT, the correct amount and it is not being challenged by you.
2) is your Latvian account GBP currency denominated?
If you can answer yes to both then go ahead and cash it (with a high cashing fee for a foreign cheque). If yes only to first one, then expect a hefty admin charge and fx commission/charge for cashing a foreign cheque. If no to the first one, then it is received in error and is in dispute and you should return the cheque explaining why.
Silly question
I'm assuming the Latvian bank account is actually in the name of the UK company. Otherwise you won't be able to bank the cheque there under any circumstances.
Returned VAT cheque?
Do you mean a cheque from HMRC for a VAT refund following submission of the company's VAT return? Such refunds are usually paid by bank transfer direct to the company's nominated bank account.