Hi,
I work for a UK VAT registered company in the UK.
We have bought plant and machinery for £35000 from Germany.
On the German order form they have a German VAT number and a UK VAT number.
The plant is being delivered from Germany to the UK
How do account for this on our VAT return?
Hope I have supplied enough info. Many thanks.
Replies (4)
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What rate?
Can you confirm if the German supplier has charged UK VAT at 20% (and not 19% German VAT)?
UK VAT number?
Have you checked the UK VAT number shown on the order? You might find that it is your company's own VAT number.
Have a look at accounting for VAT as acquisition tax:-
https://www.gov.uk/vat-imports-acquisitions-and-purchases-from-abroad
VAT return boxes 2 and 4 - VAT on EC acquisitions
The usual scenario for cross border EC country to EC country business to business sales is that the seller obtains and verifies the customer's VAT number and then quotes this on the sales invoice with no VAT being charged.
The buyer is then under an obligation to "charge themselves" VAT eg. invoice price x20% and put this acquisition tax in box 2 on the VAT return then, if the purchase is eligible for VAT recovery / allowed under partial exemption rules if applicable this VAT amount is added to the box 4 amount recovered, often no net VAT cost - a VAT cost can arise if the goods are not qualifying for input tax recovery or if the buyer has partial exemption situation where to goods have been used fior VAT exempt supplies and the VAT fails the de minimus calculation.
The net value of EC acquisitions goes in box 9.