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Where Taxpayers and Advisers Meet

VAT- trading with EU

lukasyno82
Posts:3
Joined:Mon Jan 16, 2017 9:16 am
VAT- trading with EU

Postby lukasyno82 » Wed Jan 18, 2017 8:42 am

Hi,

I have another questions.

1.

Triangular supply, how to fill it in in VAT return ??

2.

Normal trading with EU.

Example: we have bought goods from EU VAT registered supplier.
And we have sold it to another VAT registered EU company.

Do we need to pay VAT to HMRC ? and then claim it back ??
Or do we not include it as zero rated ?

Please help.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT- trading with EU

Postby les35 » Wed Jan 18, 2017 5:54 pm

2. a normal purchase of goods from another MS; you account for VAT (at the rate appropriate for those goods) as acquisition tax, and reclaim this, subject to the usual rules.

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm

Re: VAT- trading with EU

Postby Lavender2306 » Thu Jan 26, 2017 10:40 pm

Hi,

I have another questions.

1.

Triangular supply, how to fill it in in VAT return ??

2.

Normal trading with EU.

Example: we have bought goods from EU VAT registered supplier.
And we have sold it to another VAT registered EU company.

Do we need to pay VAT to HMRC ? and then claim it back ??
Or do we not include it as zero rated ?

Please help.
Hi lukasyno82,

1. Triangular supply is when the goods from 1 party in the supply chain are physically moved to the last, 3rd, party in the chain.
Lets say for simplicity, we have businesses A in Germany, B in UK and C in Ireland.
If you are B, in the middle, then you provide your VAT number to A. A will zero rate the supply to you.
Then your customer, C will be required to account for VAT in Ireland as an acquisition.
VAT return:
A - will include the sales value in Box 6
B - must not include the supply in their VAT return, there is no VAT to pay either.
C - will include VAT value in Box 1 and Box 4 and also include purchase value in Box 7

With triangular transactions you are required to inform tax authorities in the receiving country, here it is Ireland, that you are going to use simplified procedure.

2. If you have A, B and C but the goods are moved from A to B and then from B to C, then you have
normal supplies between A and B and B and C
1) A sells to B , B accounts for acquisition VAT and in its VAT return it includes VAT value in Boxes 1 and 4
2) B sells to C, B zero rates the supply using VAT number of C. in its VAT return it will include the value of the supply in Box 6.


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