VAT rate to show on invoice to EU customer

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Seller_oYl0UE5Ve5HSf

VAT rate to show on invoice to EU customer

So we have everything setup for selling to customers in the EU, all prices are treated as an export and 0% VAT rate for UK returns and submissions.

However to ensure all pricing is correct and send as DDP we have to include the import VAT amount on the purchase - this is 21% to be cleared in Netherlands.

My question is if we are providing invoices to customers can the VAT rate simply be labelled as 21%? And the VAT value calculated on this and show including VAT 21%?

Or as it is import VAT does it have to be shown differently?

Thanks.

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18 replies
Tags:Customer, SAFE-T
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Seller_NoLYurmb006tq
Most helpful replyThis reply was marked most helpful by the original poster.

Hi so it will need to simply show as
Sub£10
Vat£0
Total£10

I think the issue many are going to find with this after brexit malarcy is DDP cant is claimed differently on vat returns, depending how things are sent and where to also becomes more complex such as if using freight agent then they pay the EU import VAT and recharge back to you, but it cant then be claimed back on UK VAT return and the only way to claim it back is if you vat reg mister in the eu native state.

I think anyone looking at selling MFN needs to seek advice or do a lot of research first

00
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user profile
Seller_NoLYurmb006tq
Most helpful replyThis reply was marked most helpful by the original poster.

Hi so it will need to simply show as
Sub£10
Vat£0
Total£10

I think the issue many are going to find with this after brexit malarcy is DDP cant is claimed differently on vat returns, depending how things are sent and where to also becomes more complex such as if using freight agent then they pay the EU import VAT and recharge back to you, but it cant then be claimed back on UK VAT return and the only way to claim it back is if you vat reg mister in the eu native state.

I think anyone looking at selling MFN needs to seek advice or do a lot of research first

00
user profile
Seller_qZO3ZCjoBXEeL

As @PeterT has said, you cannot mark VAT on the invoice as none is directly charged or recoverable.

You are either charging the import costs as part of the shipping or in the product cost itself. There is not VAT to record and mark. Do not put a VAT amount on the invoice as this would be unlawful.

10
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Seller_oYl0UE5Ve5HSf

Okay thanks for confirming.

We would not be reporting any of this VAT ourselves but thought the customer would need to see any import VAT paid. Shall make sure VAT is not noted anywhere.

00
user profile
Seller_oYl0UE5Ve5HSf

Yes sorry. Meant just invoiced from the carrier for the costs and this would be a normal expense. But no VAT is recovered from our UK VAT return.

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