I have a UK based VAT registered client. He doesn't make sales anywhere else other than the UK.
He does however purchase food goods from the Netherlands. The invoices I have to hand have a VAT charge of 6% included.
I have trawled the internet and spoken to HMRC, with regards to claiming back this VAT, and have been given conflicting information. I have read so much that my mind is in a whirl and I cannot make sense of anything!
Do I ask my client to contact the supplier to re-invoice without VAT and ask for a refund (as advised by HMRC) or do I go down the refund of EU VAT route. Then there is the question of how and what I account for on the VAT return and if I need to fill in an Intrastat form? The clients arrivals are below the £1.5million threshold.
This has been a very tricky client, and not just from a VAT point of view, there is well over a years worth of VAT to be dealt with and everything needs to be done NOW!
Please would someone give me some accurate, expert, step by step guide on this?
The Netherlands supplier should re-invoice the UK registered company VAT-free, and refund the VAT charged. The UK business then accounts for VAT under the EU Acquisition Tax rules, accounting for VAT in Box 2 to the extent that the food items are not zero rated. Obviously where the items are zero rated, the Box 2 figure is zero.
