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kinster
04-07-2006, 10:36 AM
Hi

I'm buying some stock as a non-VAT reg UK business within the EU. Which country's VAT do I pay if they're a VAT registered company? I assume it's theirs? What if they're not VAT registered?

Thanks

JayKay
04-07-2006, 12:09 PM
All international invoices must not carry any VAT. If your supplier issue a VAT invoice, then you should contact them straight away and ask for a new one.

As far as I know there is VAT payable if you import from a EU country. However, for expert advice visit http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_Home or call them.

If you are a VAT registered in the UK, then even if you have to pay VAT here in the UK for an import, you can claim it back in full. Normally the whole procedure is carried by your courier.

I hope this helps.

kinster
04-07-2006, 12:24 PM
are you sure?

http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sl&type=RESOURCES&itemId=1074416497

For sales to a non VAT-registered business or consumer in another EU country, VAT is paid in the country from which the goods are despatched. However, if the sale exceeds a threshold set by the country you are selling to, then VAT is due in that country. For example, if you sell to non VAT-registered German consumers you charge VAT at UK rates. If you are responsible for the delivery of the goods to non VAT-registered customers within the EU, you should read the section on distance selling in Notice 725 on the HMRC website.

James Smith
04-07-2006, 01:19 PM
JayKay is wrong here - if you are not VAT registered itís just the same as in the UK - you pay the invoice in full that you receive and nothing is reclaimable. This invoice will include any local VAT at the local rates that has been applied.

Common example is invoices from Google which is based in Ireland and included Irish VAT at 22% or something similar.

There really isnít anything more to it than that if you business is not VAT registered.

If your business IS registered than things get more complicated...I imagine JayKay is registered from his comments above.

hope this helps,

Regards,

kinster
04-07-2006, 03:46 PM
As a non-VAT UK business, if I bought from a VAT registered EU business. The courier (UPS) will charge me UK VAT? Is this correct

cheers

JayKay
04-07-2006, 04:22 PM
Common example is invoices from Google which is based in Ireland and included Irish VAT at 22% or something similar.


Are you sure? Because I use the Google's AdSense service and even I am invoiced by Google Ireland, they do not add any VAT on that invoice...


UPS will only charge you if they have to pay VAT on your behalf at the time the goods enter the UK.

JamieM
04-07-2006, 04:56 PM
Originally posted by JayKay
Are you sure? Because I use the Google's AdSense service and even I am invoiced by Google Ireland, they do not add any VAT on that invoice...


You must be VAT registered then and have submitted your VAT number to Google.

If you are not VAT registered then you should be charged VAT at the local rate of 21% (sharpen up James :D)

James Smith
04-07-2006, 05:03 PM
Jamie is spot on.

NB - come down this end of the country and see if you can still be sharp in this humidity!

I bet you still have your arms covered in Scotland!

JamieM
04-07-2006, 05:20 PM
Originally posted by James Smith
Jamie is spot on.

NB - come down this end of the country and see if you can still be sharp in this humidity!

I bet you still have your arms covered in Scotland!

LOL! It's actually very hot here today too. I would imagine you are baking down there. Go for a swim in your swimming pool. ;)

kinster
04-07-2006, 05:35 PM
Just found out that I will be paying Germany's 16% VAT as a non-VAT UK business.

Jamie, are you the UK distributor of Power-Gyro balls?

JamieM
04-07-2006, 06:42 PM
Originally posted by kinster
Just found out that I will be paying Germany's 16% VAT as a non-VAT UK business.

Jamie, are you the UK distributor of Power-Gyro balls?

Yes, unless you're making a complaint. :D

It would be the first of course.