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ElsieB said:
“
If a uk business incurs vat from a eu business..can they claim it back? The purchase is for an item that was for resale here in the UK. The invoice is in euros.
If they can..how is this done?
Thank you..I have read conflicting advice on what should be done.
”
Hi, ElsieB
We need to understand where is place of supply (PoS). EU (non EU) business is overseas supplier - does not have any UK VAT obligation as it is not making UK supply. PoS - not UK. Import VAT charge as normal rate. Import VAT can be paid or deferred via a duty deferment account. UK VAT registered traders can account VAT for import VAT under Postponded VAT Accounting (PVA) which allow the VAT to be declared as output VAT on the VAT return and paid at the time of import. For the fully taxable businesses the import VAT is recovable as input tax, so there is no net tax due. If a business did not use PVA - it will have paid the import VAT at the time of entry, before HMRC would released the goods.
Julia
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