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A client of mine is going out to Belgium to buy some firearms (he has a section 5 license so do not panic).  When he gets there, if the company he is buying them from is VAT registered then he is going to get charged 21% Belgian VAT.  I assume that based on HMRC rules he cannot claim this back because he is going to be reselling the goods??

Will he have to charge himself UK VAT on this as it is an "acquisition" and then claim it back?  I believe this would be a T8 tax code in Sage?

For example, the goods are £60,000 including VAT (21%).  When he gets home this would be keyed into Sage as £60,000 with a T8 adding it to the relevant boxes on the VAT return. 

The reason I want to check is because the above example is the same as reverse charge on services yet it is good he is bringing in.  HMRC states that you can claim back the VAT but is it in this way or some other way?



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By Coeus
26th Feb 2012 20:45

This is an acquisition of goods from an EU member VAT registered business by a UK VAT registered business.


The supplier in Belgium should be zero-rating the supply to the UK. No VAT should be suffered by your client.


Your client must treat this acquisition as a 'self supply' thus charge himself (box 2) and reclaim (box 4) the VAT on purchase at the equivalent UK rate of 20.0%.


The reverse charge mechanism applies to certain specific goods (microchips etc.) and services from outside the UK.

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26th Feb 2012 23:03

Many thanks!

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