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Triangulation

Triangulation

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We are buying a componenet from a Slovenian a vendor who charge us Slovenian VAT which is delivered in Italy.

In Italy the compenent is installed in a truck by a third party. The truck is imported in UK. A third party is taking care of the delivery. The final customer in UK is receiving the truck including the component.

We are being charged Slovenian VAT which we cannot recover.

Now what should we charge the UK Customer. We charged standard Rate 20%.

However, I am wondering if the supply took place in Italy and we should actually have been charging Italian VAT. We are not VAT registered in Italy. 

This is a one off deal. 

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By paul.benny
02nd Jul 2021 12:27

I think you may have asked this very same question before.

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By accountingdude
02nd Jul 2021 12:54

That was on the input side. How to treat the purchase invoice of the component. Now we need to raise the sales invoice.

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By paul.benny
02nd Jul 2021 13:35

You should almost certainly be VAT registered in Italy for this transaction.
You might still want to look at Jason's answer from May. Had you taken action then you would probably have less of a problem now

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By Leywood
02nd Jul 2021 13:56

From your profile I would say you need a 'Jason' on tap ie sign him up to provide advice for you specifically.

Win win for you both.

+ better than wearing out folks goodwill.

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