Share this content
0
278

VAT Charge on car lease to offshore company

Hi, all.  I have someone who plans to set up an offshore company which will have it's headquarters outside of the EU VAT zone, but will be operting in the UK, and consequently wants to lease company cars in the UK.  They have said that the lease company can zero-rate the VAT charged as the company is not VAT registered and is outside of the EU VAT zone.  Is this correct? Also, if this goes ahead and HMRC decides they don't like it, who would be responsible for paying the resulting VAT bill?

I'll look forward to your replies, many thanks

Replies

Please login or register to join the discussion.

avatar
By Pygmy
09th Nov 2018 11:12

Have they found a lease company which is happy with this arrangement?

Thanks (0)
avatar
to Pygmy
09th Nov 2018 16:46

I'm not sure, I will post on here if they do.
Thanks

Thanks (0)
09th Nov 2018 21:03

Leasing of cars in the UK constitutes the making of taxable supplies, and renders the company liable to register for VAT. As a non-national company, the usual registration threshold (£85,000) does not apply.
Here is some guidance about the way HMRC can require a NETP to appoint a Representative who will be liable for any unpaid VAT: https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg3...

Thanks (1)
avatar
By Matrix
to leshoward
09th Nov 2018 21:13

They can but it is possible to register a non-resident for VAT without appointing a tax representative and just having a tax agent.

Thanks (1)
avatar
to Matrix
09th Nov 2018 23:03

If they are able to do this then why would they both registering for VAT?

Thanks (0)
avatar
to leshoward
09th Nov 2018 23:02

Thank you for your reply I'll have a look at that now

Thanks (0)
avatar
10th Nov 2018 08:24

“Wants to lease company cars in the UK” - lease cars to use in their business, or lease cars to third parties i.e. a car rental business ?

Think there may be a communication issue above....

Thanks (1)
avatar
to VATs-enough
10th Nov 2018 09:45

They want to lease cars for use in their own business. Sorry if I didn't make this clear.
Many thanks

Thanks (0)
Share this content