I have read HMRC's guidance on accounting for VAT on the importing goods within the EU (acquisition's)
http://www.hmrc.gov.uk/vat/managing/international/imports/importing.htm
but I cannot find any guidance on whether the EU vendor should be charging VAT or not and if they dont then what you should do.
I have assumed from the following statement that we we would effectively charge ourselves the output VAT (reverse charge) and reclaim back the VAT?
VAT on goods from European Union (EU) countries
If you are registered for VAT in the UK and receive goods from other countries in the EU, technically known as acquisitions rather than imports, you will normally pay VAT at the time the goods come into the UK. The rate of VAT payable is the same rate that you would have paid had the goods been supplied to you by a UK supplier. This VAT is known as acquisition tax and you can normally reclaim this VAT, if the acquisitions relate to VAT taxable supplies that you make.
Can anyone please confirm my assumption or not?
Replies (2)
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Generally on B2B supplies of goods within the EU and across borders, No VAT is charged by the vendor. The supplier then treats this as an acquisition of goods and accounts for Output VAT at 20% in the UK in Box 2 on the VAT return and recovers the Input Tax according to whether they are fully taxable or not.
If an EU vendor has delivered goods outside of his Member State and holds a VAT registration number for the purchaser in another Member State - then No VAT should be charged.