Company with UK and German VAT registrations

by **Dave-A** on Mon Mar 15, 2010 11:10 am

Hi,

A company has UK and German VAT registrations. 99% of transactions go under the UK number. We're a UK company but a handful of sales are delivered from a german supplier to german customers - hence the extra vat registration.

Silly question, but do the sales and purchases that include German VAT count as inputs and outputs on the UK VAT return, so that they go into boxes 6 and 7?

Thanks,

Dave-A

by **Generix** on Mon Apr 19, 2010 2:06 pm

No - they will be accounted for (presumably) on your German VAT return.

by **Dave-A** on Fri Apr 30, 2010 12:19 pm

Thank You Generix. This is what we do. Can I presume that a supply under our German registration (to another EC country eg Spain) is also outside the scope of EC sales reporting? Such transactions would not be on intrastats as there's no movement into the UK.

Thanks,

Dave-A

by **Generix** on Fri Apr 30, 2010 2:59 pm

Assuming we are referring to goods from Germany to (for example) Spain;

Assuming you meet the requirements set by the German tax authorities (evidence of removal of goods, invoicing requirements, customers VAT number etc) for the supply to be treated as an intra-community supply then no German VAT should be applied to the transaction, and the customer (in Spain) will self account for the VAT.

You would have to complete a German EC Sales list and intrastat declaration if you exceed the respective thresholds.

If you are seeling from Germany to private individuals (i.e. retail sales) in Spain then you may have an obligation to register for VAT in Spain.

Happy to provide more detail if you give me the exact supply chains - cheers.

by **Dave-A** on Mon May 03, 2010 2:12 pm

Thanks Generix,

I think we've been counting a few such transactions (German VAT return sales) as EC sales on our UK returns.

You are implying that as long as a sale is under our German VAT reg then it may be a German EC sale, German Intrastat etc etc - ie all under the separate regime - so we'll have to watch this. The difficulty is that sales are often split into stage payments. Often the delivery arrangements change prior to delivery and this effects the VAT status (UK or German) of the final supply. I'll have to insist on greater clarity from sales team!

Thanks.

Dave-A