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