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Charge or not Charge VAT?

Goods moved within EU (Germany) but invoiced from UK

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Hi All,

we (seller) are based in UK, we have a customer in Germany placed an order with us, we (UK Seller) didn't have the items in stock however our German subsidiary has the items. we (UK seller/ parent) buys back items from German subsidiary (German Sub is our distributor) but get it delivered to German customer therefore the goods do not move but stays in EU. how do we charge VAT? and does the parent company need to register for German VAT? German Subsidiary will invoice for the item and we (UK seller/parent) will invoice the German customer. unfortuanately German Subsidiary cannot invoice German customer direct (it would have been a simple solution). 

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By David Ex
17th Jun 2022 11:31

You’ve joined today to ask for free professional advice on a (seemingly) complex tax matter. Might have helped your cause to say “please”. Basic courtesy costs nothing; unlike reliable professional advice.

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Replying to David Ex:
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By mialake
17th Jun 2022 11:50

apologies, as you mentioned already i am very new to this forum. i would be very grateful to have any advice please.

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Replying to mialake:
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By David Ex
17th Jun 2022 12:28

mialake wrote:

apologies, as you mentioned already i am very new to this forum. i would be very grateful to have any advice please.

Your question suggests you are a group of companies. Who do you usually use for tax and accounting advice?

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VAT
By Jason Croke
17th Jun 2022 12:22

German sub will charge you (UK/Parent) German VAT as the goods are in Germany and do not leave Germany. You cannot reclaim this German VAT on UK VAT return.

It also looks like you (UK/Parent) take ownership of goods physically in Germany and therefore you (UK/Parent) are required to register for German VAT and charge German VAT to your German customer.

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