Editorial team AccountingWEB.co.uk
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Any Answers Answered: VAT special

TaxTV’s Giles Mooney is joined by Neil Warren to tackle some tricky VAT conundrums involving a UK company with a director resident in the EU and a template to calculate a partial VAT recovery rate for annual adjustment.

13th Nov 2020
Editorial team AccountingWEB.co.uk
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To view the full questions and AccountingWEB reader answers click on the links below:

UK company with director resident in EU

The first VAT question is from bendybod who asks about the VAT position of a UK company director who has moved to the EU. The director works from home, and there is no company presence in the UK other than the registered office.

The limited company client provides consultancy services to two main customers, one in the EU and one in the UK. Bendybod wants to know: “What is the position for VAT registration? Does the company have to register in the EU country (Spain, in this particular case) as the turnover is over the Spanish threshold of Euro 35,000?  Or does the UK distance selling threshold of £70,000 apply?”

Annual adjustment of VAT recovery rates

The next question comes from AccountingWEB member nmms who is looking for an Excel template to calculate a partial VAT recovery rate for annual adjustment.

“We are charity and we carry both taxable and VAT exempt activities,” said the reader. “I understand we are required to run an annual review and adjust the VAT rates. I am looking for workings template how this should be done. I am aware of VAT Partial Exemption Guidance from the HMRC.”

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