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Vat return and purchase from EU

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I have received a purchase invoice for goods £250 and delivery £120 from Slovakia dated 30/03/21. On both there's already vat 23% calculated. How should I account for it in my vat return. Can I use reverse charge for delivery (below£135) and PVA20%. Just to mention I don't have any c79 nor CSA statement yet.Any advice please.

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By lionofludesch
04th May 2021 19:12

Are you expected to pay this 23%?

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By Nenu
04th May 2021 20:09

Unfortunately yes, because they ignored our GB vat number. Anyway even gross price was irresistible.

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By Nenu
04th May 2021 20:14

Just to clarify- Can I use reverse charge for my delivery (below£135) and PVA 20% for the goods?

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By VATs-enough
04th May 2021 22:29

In answer to your questions - 'No' and 'No'

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By Nenu
05th May 2021 00:50

Would you please give me some more details. How to deal with it, please.

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Jason Croke
By Jason Croke
05th May 2021 08:03

The invoice should not have had 23% Slovakian VAT on it. That is your starting point, and because your starting point is wrong, then anything else you do will flow from being incorrect.

If you are not going to get the Slovakian VAT credit noted, then I would put the gross invoice value (net value of goods and delivery + 23% VAT) as a purchase, zero rated VAT, because we do not want to reclaim the 23% VAT in Box 4 on our UK VAT return, but we do need to record the gross amount in Box 7.

To be clear, you cannot reclaim the Slovakian VAT on your UK return, it is irrecoverable, so treat it as a gross cost in your accounting records.

You cannot reverse charge the invoice because VAT has been charged on the invoice already. Whether or not you will get a C79 is too early to tell, it may also be that the delivery company have postponed the VAT for you without telling you, which means you need to register for the Customs Declaration Service to make sure you're not missing anything.

The £135 threshold you refer to relates to goods sold to consumers (B2C) not to businesses. On the basis the supplier has treated you like a consumer even though you gave them your VAT number, the Slovakians should have registered for UK VAT and charged you UK VAT, so they're not compliant with UK law. The only relevance of the £135 is that under this value and import duty is not applicable. it is nothing to do with reverse charge 9which is a concept reserved for B2B transaction", which this isn't.

and is not actually reverse charge,

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