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