Hello everyone,
Our company is owned by an entrepreneur from Russia who also has a similar business in Russia. As production costs are cheaper in Russia some of it is done in Russia. Are we here in the UK liable for any VAT in this regard? Thank you.
Replies (3)
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Hi,
Cheekychappy is right... you haven't given us much to go on here with your cryptic question.
Firstly, as you probably know, Russia is not in the EC for VAT purposes.
In order to answer your query, please could you confirm as follows?:
1. Is the company a UK company and hence registered in the UK? (the location of the owners/ directors does not matter here)
2. Does the company have an overseas branch in Russia and hence, how does it operate?
3. Is the "work done" that you refer to completed by the UK company in a Russian branch? or Is the "work done" referred to completed by a Russian manufacture?
4. Where are you selling the goods from? In other words, is the company "importing" (a loose use of the word) the goods from either the Russian manufacturer or the company's Russian branch for resale from the UK OR are the goods sold directly from Russia?
5. Where are your customer based? Are you selling to customers in the UK, are you selling to the EU or are you selling worldwide?
6. Is the company VAT registered in the UK and/ or is the company's turnover close to the threshold for UK sales?
7. Finally... when you ask whether the company is liable for UK VAT, do you mean on "Sales" in the UK or on imports from Russia?
With the above answers, we may be able to point you in the right direction!
Brgds
DK