Getting the tax back from goods bought in England

[osie]

Hi All

With the sales now on... I wanted to buy some things in England for my French company with the intention to get the tax back(somehow).

Is this possible as I have been told that it is not.

Assuming the pound/Euro is 1:1

For example if I buy a computer for 1000pounds in England. with tax at 15% = 150 pounds tax

Can I buy it without tax either by being tax exempt.. I dont think so?

or by claiming the tax back in France... I have been told this is not possible too..

Also, I would be tax exempt if I bought it in USA but I have been told that I still can not claim the import duty tax back as the item was not bought in France.

If true then the item I would buy would need to be 150 pounds more expensive in France + delivery costs for it to be worth my while.. Does that make sense?

In short, is it correct that you can only claim the tax back on French bought items?

Thanks in advance

osie

[BJSLIV]

I assume that you are VAT registered in France.

[Albert the InfoGipsy]

Because if you are TVA registered in France then buying stuff for import from another EU country is VAT free in that country. You need to give your full TVA registration number, including the country code, to the supplier, then they bill you tax free. I don't know how France deals with all of this; all the similar transactions I've done were into Britain for my UK company.

[osie]

I am tva registered in France however I have been told by the company that they charge vat unless it is outside the EU.  I have also been told that even if I bought it outside of the EU then it would be tax free but France would change import duty which can not been claimed back.

re: companies policy

 VAT deductions

All our prices are in pounds sterling and include VAT  for orders within the UK and the European Community.

[BJSLIV]

The statement

All our prices are in pounds sterling and include VAT  for orders within the UK and the European Community

is correct if they are selling to a non-registered trader, which  for many businesses is all they ever encounter. However Albert guessed where I was going, and the law is that if you supply all the necessary proof then they should zero rate the sale. You would then pay the appropriate VAT in France and subsequently / simultaneously reclaim the appropriate amount.

Some companies don't know how to handle this, or don't want the aggravation / risk of being held liable if the sale turns out to be a phony export.

You mayt wish to use an alternative supplier better versed in the accounting rules.

See

http://www.hmrc.gov.uk/vat/int-exports.htm#1

[osie]

Thanks for that... I did phone them up but they did not seem to know about this.

[velcorin]

If you purchase goods from outside the EU, you will not pay sales tax (VAT/TVA/GST/whatever). However the carrier will pay import duty, which you will have to reimburse to them before they will allow you possession of the goods. Import duties vary depending on the type of goods. Check with one of the big carriers like UPS, to confirm what the local duty would be if you don't want a nasty surprise. Even things like DVDs and CDs from the US should attract import duty, if the goods are spotted for what they are.

Within the EU there is a system called IntraStat which large companies use to reconcile their intra-EU sales taxes (to which think Albert is referring), this doesn't apply in the case of your supplier. If you want to recover EU VAT, speak to your accountant, or a specialist VAT recovery company. It will require a claim to be submitted to the country in question, there are minimum claim levels, forms to be completed and proofs to be supplied. Different EU countries have different rules, I understand the UK is one of the simpler systems. Things change regularly in the wacky world of sales taxes, so get some professional advise if you want the latest position, I'm at least 12 months out of date.

[velcorin]

Forget what I wrote about VAT. Just been speaking to our Tax Specialist, the rules have changed. The UK company can supply the goods VAT-free in the EU if you prove you are TVA registered, apparently the admin is a pain so some companies can't justify the expense, and prefer not to have the business, as it costs too much. Try a bigger company.