Goods shipped inter EU and VAT Reporting

Goods shipped inter EU and VAT Reporting

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Hi All,

Please could someone explain to me the reporting required for the following transaction for a UK based VAT registered company in terms of VAT box 7 and 9 and intrastat?

There are two stages to the problem.

1. We buy a zero rated raw material from two separate EU countries which is delivered directly to a third EU Country for processing. We are invoiced for this material.

2. Following processing, the third EU country then sends us the finished product (again zero rated) for which we are invoiced. As we have supplied the raw material, we get a reduced rate for this compared to what the same product would have cost us from the same company if we had asked them to source the raw material.

I am confused as to how to report this on VAT return and intrastat.

In respect of stage 1, this is a delivery between EU countries, the cost of which is in borne in the UK. I think this does not have to be reported on the UK VAT return anywhere as no goods traverse UK shores and no service is provided. Is this correct?

In respect of stage 2, I presume this is a normal invoice for the product which we record like any other EU purchase i.e. VAT box 7 for the value and on intrastat as like a normal purchase from an EU country.

I am happy that there is no impact on the net amount due to HMRC but I would like the reporting to be correct.

I appreciate any advice on the matter.

Thank you

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By User deleted
23rd Apr 2014 10:37


In your books the raw material invoices you record has to be EGG VAT rate, this means EU supplies (goods) zero rated, however you have to run this through your VAT books

so you have to record them with the correct VAT rate, as they are not zero rated ie they would be in the UK.

 

If you would go abroad (EU) and fuel up your car o eat and the VAT deducted at source, you would need to record that as Out of the scope of the VAT when you do you entries. Just for an example.

 

There is some info re intrastat, you need it only after reaching certain level of threshold

I tried to copy this info in but didn't work

www.gov.uk/introduction-to-intrastat

 

 

 

 

 

 

 

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