VAT on invoices

[Graham C]

Hopefully some wise soul can help me.

We've just done a job for a company and had to invoice a company in Germany.  The goods remained in the UK though.  Do we have to charge VAT on the invoice?  I was under the impression that if the goods were for another country then the VAT shouldn't be applied but for goods remaining in the UK VAT should be charged?

Thanks

[Graham C]

hmm, doesn't get easier.  Apparently after delivery, they sent them to Spain, but as far as I'm concerned, it's a UK sale still isn't it?

[matt674]

You need to get the company's VAT registration number

If it is a UK number then you charge them VAT

If it isnt a VAT number then you complete a VAT EC sales list form giving their number and total value of the invoice at the end of the quarter

[matt674]

p.s. you weren't selling mobile phones were you

http://en.wikipedia.org/wiki/Missing_trader_fraud

[Graham C]

Thanks

The VAT no for the company we did the work for or the company we're invoicing?  The two are separate.


lol not phones no
 

[matt674]

usually the VAT reg number of the company you are invoicing - but why are you doing work for a UK registered company but invoicing a German company?

[Jon MW]

usually the VAT reg number of the company you are invoicing - but why are you doing work for a UK registered company but invoicing a German company?

I'm guessing the German company then reports to a group of 'partners' somewhere in Sicily.

That's it isn't it?

[Bongo]

Don't you have to charge VAT on anything within the EU?

Hence why we don't get duty free anymore?

[matt674]

there will be VAT on the goods but it depends if the company is VAT registered or not. If they are not, charge them VAT at UK rate. If they do have a VAT number then they are responsible for paying the VAT at their countries rate. (though you will have to declare this to VAT people on quarterly form)

There are also lots of other rules and regulations regarding the value of the goods and distance selling thresholds - but then you are saying the goods never left the UK.

If they cannot prove the goods left the UK however this is where is gets tricky as you will need documentry evidence that the goods have left the UK for it to be classed as an export.

If i were you i would visit MH revenue and customs website and read notice 725

[Sheriff Fatman]

There's no export taking place so charge standard rated VAT at 17.5%.

The subsequent export doesn't matter as VAT law looks at everything on a transaction by transaction basis.