vat on euro payments

[luzippu]

hi

here's the scenario:

- 2 uk registered ltd companies (C1 and C2),
- C1 buys goods in europe and re-sell them in the uk to C2
- C1 invoice C2 for the goods in euros (to keep an eye on currency fluctuation)
- does C1 need to add VAT on the invoice, given that it's in euros?

thanks

[openmind]

The currency the invoice is in is irrelevant. Are both companies VAT registered?

[luzippu]

yes they are both vat registered.

thanks

[openmind]

In that case C1 will need to charge VAT to any purchase in the UK

If the purchase is made within the EU (not the UK) they must also charge VAT unless the buyer is a EU (not UK) VAT registered business that can provide a valid VAT number in which case VAT does not need to be charged.

There are exceptions and special rules to all this so the best thing is to speak to your accountant or ring the HMRC help line...

[ARK]

openmind do you practice as an accountant in your spare time?

[openmind]

Nope not at all

[ARK]

Just a wide knowledge base....?

[openmind]

Just from using a great accountant that drums stuff into my brain

[James Smith]

"Just from using a great accountant that drums stuff into my brain"

Cant think who they might be

[openmind]

"Just from using a great accountant that drums stuff into my brain"

Cant think who they might be

Yeh I wonder