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Accounting for German VAT- UK business

Accounting for German VAT


What happens in this scenario...

1)A UK VAT registered company (A) raises an order made out to a UK VAT registered company (B) deliverable to a German Ust registered company (C). Company C is part of the same group as Company A.

2)Company B purchases the ordered goods from a German Ust registered company (D).

3)Company D then delivers the goods within Germany to Company C.

4)Company D invoices Company B with 19% Ust.


How should company B deal with the 19% Ust? I see 3 possibilities?...

1)They reclaim it from the German tax authorities.

2)They register for Ust and charge company A 19% Ust on the goods.

3)They charge company A UK VAT on the goods and reclaim it through their VAT return. (Although this makes little sense)

Thanks for your help


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