Accounts question-sorry to be so boring!

[hotdogbird 10]

Hi,

 

If a spanish company order english goods, to be delivered to an english address, but paid for by head office in Spain, are they still liable for VAT or are they exempt?

[captainwood2 10]

as far as i know your only exempt if the goods are being exported from the uk

[Raggy 10]

As I understand it, if the goods are to be used in the UK they are vatable. If the Spanish company is taking them to Spain for use then they would need to provide you with a shipping or airline bill to prove the goods have left the country. In that situation you would not charge VAT.

[hotdogbird 10]

I'm still none the wiser really. i thought as the goods were being delivered within the uk, they would indeed still have to pay vat but my client is adamant she doesn't. My accounts team are on lunch-a long lunch!

[hotdogbird 10]

has anyone got an answer on this. my accouts team now say they have to pay vat, another of my workmates seems to think my accounts team are wrong......anyone know?

[hotdogbird 10]

has anyone got an answer on this. my accounts team now say they have to pay vat, another of my workmates seems to think they're wrong....anyone know for sure?

[Russet 10]

According to the VAT guide on the HMRC website, it looks like they are indeed liable for VAT.

 

It may be useful to have a look, unless you have already done so:

 

http://www.hmrc.gov.uk/vat/managing/international/exports/goods.htm

 

[GrinderBloke 10]

Within the EU you have to pay VAT, if you don't charge your customer you will still have to pay the VAT.

[Russet 10]

Apparently it also depends on whether your EU client is VAT registered.

 

To be honest it may be a good idea to ring HMRC on one of the numbers on the website and clarify it for definite. They will no doubt ask for some more details about your scenario. I have rung them on occasions with queries and they were helpful. You need to be sure you get the information 100% spot-on in a case like this, too, and forummers' opinions differing may confuse matters somewhat:)