VAT on purchases from Germany

VAT on purchases from Germany

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Over the past quarter I have bought several thousand pounds worth of goods from a supplier in Germany via their website. Goods paid for by credit card.

On the website they say:

"All prices in our U.K. International Cyberstore have been calculated with 17.5% VAT for U.K. customers."

but the invoice doesn't have VAT itemised.

I've no reason to doubt the integrity of the supplier, but how do I account for the input VAT on my VAT return so I can reclaim it?

I've looked on the HMRC website and can't find the answer to this particular question, though I'm sure businesses in the UK buy goods from other countries within the EU all the time.

And we're not talking a trivial amount of VAT here!

Thanks,
David.
David Hughes

Replies (3)

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By User deleted
20th Sep 2005 13:46

VAT charge should have been avoided
The usual proceedure for a VAT reg'd UK trader buying from a VAT reg'd German (or other EU country) supplier is for for buyer to communicate his UK VAT no. to the seller.

The seller then quotes the buyer's UK VAT no. on the sale invoice and does NOT charge VAT.

The UK buyer then self-accounts for UK VAT in Box 2, then adding the Box 2 figure to the "normal" input tax figure that goes in Box 4, so no ultimate VAT cost.

I suspect that the German supplier is more used to dealing with consumers rather than VAT reg'd businesses in the UK, hence Distance Selling Regulations require a VAT charge - but I would have expected it to be German VAT, not UK VAT charged in this case.

To sum up, contact the supplier, tell them the fact that you're UK-VAT reg'd and therefore VAT should not have been charged - so should be refunded to you, providing your UK VAT no. is valide and evidence of goods leaving Germany is held by supplier.

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By davidgough
21st Sep 2005 11:49

Don't ask Don't get
It is possible that your supplier is UK VAT registered.

Why not ask them for a VAT invoice. If it has a valid UK VAT Number then reclaim the VAT on your UK VAT return.

If a valid German VAT Number than give him your UK VAT number and ask him to Zero rate the supply. You will also need to show the purchase as an aquisition on your UK VAT return if he supplies on a German VAT invoice.

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By aa-ltd
03rd Oct 2005 13:21

Problem sorted.
I agree with Mark's proposition that VAT shouldn't have been charged in the first place.

However, as we had been charged, I took David's advice and requested VAT invoices from the supplier which they promptly emailed to me.

Thanks for the help.

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