Hello one and all! Could really do with some basic advice....
I have products about to be made in the EU and moved to the UK to a sales agent as consignment stock (customer unknown at this point) title remains ours. We are established in the U.K. Too. Agent just takes margin for efforts. We find the customer etc. I have no VAT experience and of course plan to get advice from an tax acct but I have a meeting tomorrow and could do with understanding if we have to pay the revenue on these imports or if only the VAT the customer pays the agent is due to the revenue? I wondered if the movement between us as one company as we U.K. VAT registered like we are supplying to another business. Hope this makes some sense could really do with some pointers. Many thanks for any views/advice...
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Basically it is a paper exercise to please the bureaucrats. You pay it on one box of your VAT return and reclaim it on another.
Basically it is a paper exercise to please the bureaucrats. You pay it on one box of your VAT return and reclaim it on another.
Just for clarity for the OP the ability of the business to reclaim on the return does depend upon the business having the right to fully reclaim all input tax, this tends to follow the types of supplies it makes (zero, standard, exempt)
However in practice if none of business outputs are exempt I would not expect any issues.