EU VAT Query

Can my client claim back EU VAT?

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I have a client that is to get a product manufactured in Italy for shipping to and sale in the UK.  Her company is VAT registered here in the UK and only sells in the UK.  Her materials supplier is an Italian company and insists on charging Italian VAT on invoices to her company whilst shipping the materials to the Italian manufacturer to make finished goods to be shipped to the UK. So the raw materials do not leave Italy. No Italian VAT is charged on invoices on the finished goods by the manufacturer.

Q: Can she claim back the VAT suffered on the Italian materials bought for manufacturing into finished goods in Italy?

Replies (3)

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By TheAccountant-ish
22nd Mar 2018 12:29

Yep.

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By Portia Nina Levin
22nd Mar 2018 13:32

Don't expect the Italians to repay it quickly though.

Your client would be better off coming to an arrangement with the Italian manufacturer, whereby they purchase the materials from the Italian supplier.

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Replying to Portia Nina Levin:
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By Chelseabean
22nd Mar 2018 15:04

Thanks, but I suggested that option to the client. The mark up was so high by the manufacturer for materials that it was too prohibitive to go via that route. The cheapest option is for the client to buy the materials directly from the wholesaler then supply the manufacturer.

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