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EU-prefixed VAT MOSS numbers on VAT Return. Box 4?

How do you deal with reclaiming VAT when the VAT number has an EU-prefix?

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The purchase was made from a US firm that has an EU-prefixed VAT number. VAT was charged at the local/UK rate in accordance with VAT MOSS rules. Does that mean that:

1. HMRC have the VAT, and it can be reclaimed via Box 4 alone? Or

2. The seller's nominated country of registration has the VAT and it can be reclaimed throught the electronic cross-border refund system? Or

3. Something else?

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By Wanderer
14th Feb 2019 01:42

3. Something else?

No reclaim under 1. or 2. Only chance you've got is if you convince the supplier to refund it, but they will probably refuse.

Have you appointed an accountant yet? They will be able to explain this and what you should do for the future.

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By richisb
02nd Mar 2019 10:00

My accountant has not come across the EU prefix numbers and the scheme, but is the VAT reclaimable for me as a Ltd company ? In my case software purchases from abroad 100% business. (I'm not the one filling out the returns just need to know it is a legitimate claim)

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By Wanderer
02nd Mar 2019 10:57

No.

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By dutair
14th Mar 2019 23:07

I put this to my accountant yesterday and he says it is treated as UK VAT since companies that use EU-prefixed VAT numbers charge VAT in the country of the customer at the local rate. As such HMRC has the VAT. The EU prefix has no relevance.

I also asked the supplier and they said the same thing.

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By Wanderer
15th Mar 2019 06:55

But that is not the answer to your question 'Can it be reclaimed via Box 4?'.

Treated as UK VAT? -Yes
Reclaimable? -No

This is a charge under the Non-Union VAT MOSS scheme and the VAT charge should only be made for B2C supplies.

For B2B supplies the procedure is:-
1. You give the supplier your UK VAT number.
2. They do not charge you VAT.
3. You apply the reverse charge rules.

You can't reclaim VAT that has been wrongly charged.

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By dutair
15th Mar 2019 18:36

At the time of the transaction we weren't VAT registered. We are now and the date of registration is prior to this transaction, so everything has been done correctly.

Given the difficulty in including this transaction on the VAT Return I would be happy to omit it, but apparently transactions which are within the scope of VAT have to be included on the VAT Return, which means it has to be included.

Thank you for taking the time to discuss this. I can put your comments to my accountant. Perhaps the difference in opinion is due to the details of the registration date - which I had not thought to mention here earlier.

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By Wanderer
16th Mar 2019 04:55

Well yes, an omitted fact that your accountant would know, a backdated VAT registration.

I'm now thinking that the VAT has been correctly charged initially.

Whether that is reclaimable from the supplier or on your VAT return I have never come across before. I would suggest that you go with your accountant's advice.

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