VAT with Russia

VAT with Russia

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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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By cheekychappy
24th Aug 2015 16:58

I've no idea what you are asking.

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By dkbs
24th Aug 2015 18:08

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

Thanks (1)
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By Tykva
25th Aug 2015 09:51

answer

1. we are a UK company

2. No, we dont have overseas branch. The owner has initially established company in Russia, 20 years ago. A year ago he decided to see whether there is anything similar in the UK, which he didnt find so he established the same company in the UK, which is the company I work for. As production in Russia is cheaper some parts of our product are made in Russia. Basically, both companies produce same product, but company in Russia does it for their market and our UK company does it for the UK market.

3. "work done" is completed by the UK company in a Russian company. UK and Russian companies are not related to each other except for the same owner.

4. Goods will be sold in the UK.

5. we plan to sell to customer worldwide

6. company is VAT registered

7. for imports for parts of the product from Russia

 

Thanks a lot!

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