Import VAT
It is important to understand that it is the movement of goods is relevant A transfer of shares by a company with a warehouse he owns in France in the UK will normally be classified as an import VAT, while receipt of goods by a British company warehouse in the UK for a French provider will not automatically be classified as a general import position will be reviewed, and some explanations and exceptions will follow at the end of the page.
Imports when the company in the UK are not registered for VAT.
A company in the UK, which are not registered for VAT, will generally be charged VAT by the French supplier of its imports from France may instead be subject to VAT in the UK, according to the French supplier a recording of the VAT in the UK unless the company in the UK is registered for VAT, there is no way to recover the VAT or VAT.
Imports when the company in the UK is VAT registered.
The activity in the United Kingdom should give the French supplier registration number to the UK VAT including GB prefix when importing goods from France to the French VAT is not charged if VAT is charged, the British company can not recover their VAT return in the UK, or by a direct claim to the French tax authorities under the 8th EC Directive refund scheme.
The activity in the UK would normally pay UK VAT on importation including VAT in box 2 of his regular VAT returns in the UK at the rate of VAT to the appropriate UK, it can be the normal rate, zero-rated or exempt in the UK It can then recover the same amount including the input VAT in box 4 of the VAT return, subject to the normal rules on input VAT recovery the reason for this exercise apparently circular is to avoid distortions of VAT between the purchase of goods in the UK and the import of France.
This adjustment is not necessary if the French supplier was not registered VAT.
This adjustment is still needed if the company in the UK is on the flat-rate scheme The company should consider a VAT registration in the UK at the full rate instead of the reduced flat rate, so that the goods imported include the same amount of tax as those purchased in Britain.
Strictly, VAT selling goods from France to the United Kingdom are not called imports, but are instead called acquisitions or arrived in the UK term imports is reserved for the movement of goods places in outside the EC, however, to avoid technical jargon and to make information more accessible, the site uses the term imports for the transport of goods from France to the UK.
Different rules may apply in certain less common situations.
VAT on imports from France, imports, France, registered business, French supplier registration.