Reclaiming VAT on invoice from Australian company

EU VAT number

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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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By Ruddles
08th Jan 2018 15:06

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.

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By Portia Nina Levin
08th Jan 2018 15:46

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.

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Replying to Portia Nina Levin:
By Ruddles
08th Jan 2018 15:55

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.

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By Wanderer
08th Jan 2018 15:23

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.

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By sparkler
08th Jan 2018 16:05

Really helpful replies, many thanks. My client did not give the supplier their VAT number, which is indeed probably why the VAT was charged. I will ask them to check with the supplier as to whether the invoice can be reissued if they furnish the supplier with their VAT number. Otherwise something for them to bear in mind in future.

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Replying to sparkler:
RLI
By lionofludesch
08th Jan 2018 16:55

Often, not paying the VAT can lead to the supplier correcting his invoice.

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By Portia Nina Levin
08th Jan 2018 17:11

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.

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By sparkler
08th Jan 2018 16:05

Really helpful replies, many thanks. My client did not give the supplier their VAT number, which is indeed probably why the VAT was charged. I will ask them to check with the supplier as to whether the invoice can be reissued if they furnish the supplier with their VAT number. Otherwise something for them to bear in mind in future.

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