My client (a UK company registered for UK VAT) has purchased a "website theme" on behalf of a customer, from an Australian company. The invoice is made out in US Dollars (not Australian dollars). The invoice quotes an "EU VAT Number" and 20% VAT has been added.
Can my client reclaim this VAT on their usual VAT return, by translating the purchase price to sterling at the HMRC approved rates?
Do they need to submit any further returns in respect of this transaction?
Many thanks for any assistance.
Replies (8)
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What is an EU VAT number?
I doubt very much that the VAT is claimable - assuming that it is not UK VAT. The more immediate question should be whether the "VAT" was correctly charged in the first place.
https://my.sage.co.uk/public/help/askarticle.aspx?articleid=34722
The VAT has probably been charged correctly from the supplier's point of view, absent having been given the customer's VAT number.
Every day is a school day - Any Answers really is an excellent training resource ;¬)
I suspect the scenario is as outlined above - the question does need to be asked, though.
No they can't reclaim it from HMRC.
For the future get them to give the supplier their VAT number & from then on it shouldn't be charged.
I expect that you will find that the payment preceded the invoice, and that payment was made in full when the website theme was downloaded/installed.