Iam trying to understand the VAT implications of the following case:
Company A based in UK is a manufacturer of clothes. It buys raw materials from company B based in Italy and deliveres these to company C also based in Italy. Company C transfer raw materials into finished goods and deliveres to company A.
All invoices are addressed to company A (UK based)
Should company B (supplier of raw materials) charge company A Italian VAT? The raw materials supplied will eventually be exported to UK (as finished goods) however that does not happen instantly of course.