VAT on purchases from Sweden - Anyone Help?
20 February 2006, 08:31 PM
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VAT on purchases from Sweden - Anyone Help?
Evening,
I've just set up a company and one of my suppliers is based in Sweden. I order through a UK based agent, who puts the order into Sweden and they ship to me direct, and invoice me. Now the invoices come from Sweden with no VAT, and we send a cheque to the UK agent to pay. I'm not VAT registered. At what point will I have to pay the VAT if any?
Hope I've explained without making it too complicated!
Cheers
Simon
I've just set up a company and one of my suppliers is based in Sweden. I order through a UK based agent, who puts the order into Sweden and they ship to me direct, and invoice me. Now the invoices come from Sweden with no VAT, and we send a cheque to the UK agent to pay. I'm not VAT registered. At what point will I have to pay the VAT if any?
Hope I've explained without making it too complicated!
Cheers
Simon
20 February 2006, 08:44 PM
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I think as far as I remember you dont pay VAT on imports from within the EU if you are vat registered. If you remember that the end user should be the one to pay the VAT.
1. VAT registered sweedish company sells to VAT registered UK company (VAT not applicable because both VAT registered)
2. Uk company invoices you for cost of goods PLUS VAT
1. VAT registered sweedish company sells to VAT registered UK company (VAT not applicable because both VAT registered)
2. Uk company invoices you for cost of goods PLUS VAT
20 February 2006, 08:46 PM
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you should be paying whoever gives you the invoice, if you are not VAT registered and the UK company invoices you then its 17.5% on top. If the sweedish company invoices you then it will be the cost of the item PLUS sweedish VAT (dont know what the % is)
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20 February 2006, 08:50 PM
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who is the invoice made out to?
Does it have a UK vat number on?
Basically if i sell something to another EU country I must get the companys VAT number who is located in the other country and put it on the invoice, it then goes in a seperate column on my VAT return because the VAT is not applicable to that invoice
Does it have a UK vat number on?
Basically if i sell something to another EU country I must get the companys VAT number who is located in the other country and put it on the invoice, it then goes in a seperate column on my VAT return because the VAT is not applicable to that invoice
20 February 2006, 08:54 PM
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The invoice is made out to my business partner. It does have a UK VAT number on but it should'nt. The VAT number was another companies that was for a different account.
So to make it more complicated . . what happens to the VAT for our previous invoices that have this wrong VAT number on?
So to make it more complicated . . what happens to the VAT for our previous invoices that have this wrong VAT number on?
20 February 2006, 09:03 PM
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Then depending on how your accountant runs things I would be tempted to ( cough 
)just brush it under the carpet (cough )
Im not sure who you actually owe the VAT too, but I suspect its the sweeds (opposed to HMRC). Just make sure you get charged VAT (and they take the VAT number off) from now on alternativly ask them to reinvoice you for what you have already had but I doubt they will be interested in doing it as it will mess up there VAT returns and paper work!
)just brush it under the carpet (cough )Im not sure who you actually owe the VAT too, but I suspect its the sweeds (opposed to HMRC). Just make sure you get charged VAT (and they take the VAT number off) from now on alternativly ask them to reinvoice you for what you have already had but I doubt they will be interested in doing it as it will mess up there VAT returns and paper work!
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