Hi all,
I have a quick question if someone can clarify my thinking.
Based on the following guidance below if a VAT registered business moves it's good from Mainland UK to Northern Ireland then they will have to account for import VAT on the movement. Is "the VAT on the movement" calculated on the cost of moving the goods (transportation) as their is no sale being made as the goods are only being moved between GB and NI.
As an example a motor trader in NI would purchase stock from GB, if they say paid £10,000 plus VAT for the vehicle at a auction house, they then "moved" the goods as they collect it themsleves (either personally or paying transportation) which counts as them moving it as the business they have purchased the goods from isn't delivering the goods to Northern Ireland. From that guidance would they then have to account for VAT again as import VAT and at what amount?
If they then sell the goods from their NI business then would reclaim their input VAT of £2,000 from their initial purchase invoice and charge the output VAT, how would the import VAT be factored at the point of sale if this was accounted for, would this just be reclaimed on the VAT return making a NIL effect on the import VAT
Thanks in advance
Replies (5)
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A UK dealer selling to a Northern Ireland dealer, that would be a domestic UK supply, standard rated :
https://www.gov.uk/government/publications/accounting-for-vat-on-goods-m...
Presume this is commercial vehicles not covered by secondhand rules, if cars how does it work?
HMRC have published new guidance on this today, I will look to do a detailed article on this for Accounting Web over the next couple of weeks.
https://www.gov.uk/guidance/the-margin-scheme-on-second-hand-cars-and-ot...