Intrastat & VAT?

OnlyMe_08

Hi

I understand Intrastat SD needs to be completed if we receive goods from an EU supplier and account for acquisition tax on VAT returns.

However, does it still need to be completed/declared if the EU supplier starts invoicing with a UK VAT number at 20%?

ajbisgr8

If the supplier has registered for VAT in the UK (which I assume he has since he is using a UK reg no) then it will be treated as a UK to UK supply and not therefore as an aquisition from the EU. So you would reclaim the VAT incured as ordinary UK input tax not as aquisition tax and you wouldn't account for it under the reverse charge system.

JasonLVC

You only need to do Intrastat SD returns where the value of arrivals (imports into the UK from the EU) exceed £600,000

Below that figure and the values are simply recorded on the VAT return.

As the other poster has stated, if the EU supplier is now UK VAT registered, then this is a UK to UK supply and so the normal VAT rules apply.

OnlyMe_08

Thanks for the replies.

That's what I thought, if we are charged VAT, it is to be treated as a UK to UK supply and just processed as input tax on the VAt return.

However, the tax office seem to think that because the supply of goods were directly received from an EU supplier, and the fact the usual message of 'intra-community supply of goods' or similar appears on the invoice, Intrastat on Arrivals need to be declared.

I'm confused - can we:

1. treat the invoice as a normal UK supply at standard rate - claiming input tax on VAT return

and

2. account for the monthly intrastat, which I believe should tie up to the relevant EC acquisitions box on the VAT return

Advice from VAT experts in this surrounding this would be greatly appreciated.

Regarding reverse charge, my understanding is that this is only applicable to the supplies of services?

JasonLVC

Okay - we need some details.

The goods, where are they coming from (ie, do the goods come from a warehouse in UK or in another EU country or from outside the EU?)

The invoice. Does it have VAT charged on it at 20%, is it in Pound Sterling and does it clearly show a UK VAT number (you can check the validity of it here http://ec.europa.eu/taxation_customs/vies/

If the invoice is in Pounds and the VAT number is UK legit, then the invoice shouldn't have "Intra Community" waffle on it, as it is a UK VAT invoice.

You can reclaim the VAT on the invoice but if you can do that, it cannot be an EU arrival, so it cannot go on the intrastat report or go on the VAT return in box 9.

VAT is always about "the place of supply", it is where the goods are at the point they are supplied which determines which VAT rate to charge. If the goods come from a French warehouse into the UK, the place of supply is France so the invoice is given 'intra community' treatment, it is VAT free, you do the reverse charge/Intratsta.

if the goods are in a UK warehouse when supplied to the UK customer, the place of supply is the UK. Even if the invoice comes from the HQ in France, the goods came from UK and so the French HQ has to register for VAT in the UK, it cannot supply goods directly from UK but bill you in euros and treat as inter community.

As for reverse charge, this applies to both goods and services when sold/purchased between EU countries. Services has slightly different admin requirements, goods a little simpler rules but both treated the same way on VAT returns.