I'm registered for TVA - Can I claim back VAT on UK purchases

[Wisigoth]

As

our business is registered in France for TVA, our income tax is worked out by

deducting TVA we’ve paid on goods, from the TVA we have received from our

customers.  When purchasing advertising

or certain goods from the UK, we ask for the VAT to be deducted at source since we

can’t claim it back in France against TVA. 

However, not all British companies will do this as it involves extra

paperwork for them.  These companies pay

the VAT to the British Customs and Excise so I was wondering if anyone has

tried claiming this duty back.  I can’t

find anything on Directgov.  Is there anyone who has experienced this and can tell me who to contact.

[HoneySuckleDreams]

Hello

google:  tva intracommunautaire

and there is a stack load of references to trawl through.

[pitway]

Just spoken to my sister (accountant) she has a client or two that present euro vat/tva invoices and yes they can claim it back, BUT!!, it is quite complicated to do apparently , so logically, as you are looking at the reverse of this situation it should be possible. however, if something like this is complicated in your native language I hate to think how difficult it is likely to be trying to do it using UK vat invoices in france ??????Gallic shrug et NON!!! springs to mind[:)]!! there must be people in the same situation who would be better qualified to advise.

Good luck!

Tim

[Wisigoth]

Thanks both,

I thought I would have to apply to UK Customs and Excise, as

it is they who have the VAT I paid. 

Part of my reason for thinking this is that VistaPrint (a Dutch company

we have used) invite you to apply to the Tax Office in Holland to reclaim tax

on your purchases, although for us, the amount is small so I haven’t

bothered.  We have a French accountant (with

limited English) and we put through some big purchases last year from UK but

he’s never suggested he apply to French authorities for tax paid in UK on our

behalf.  I assumed, like with the Dutch

company, it would be the UK that we had to deal with.

[Stan Streason]

Just spoken with my VAT director (yes really).

You could claim VAT back but the paperwork is really really complicated and would entail you registering a special scheme in UK.

In short your suppliers are operating their VAT scheme incorrectly and are charging you VAT that is not due.  Their excuse about their excessive paperwork is a ruse.  Most standard accounting systems can cope with non vattable supplies.  You either have to be harder with them, threaten to shop around to find someone who will do it properly (saving you 20%) or just grin and bear it.

[crossy67]

Stan's right.  We import film from Germany and it is non VAT able (on Sage it comes under tax code T8, standard rated purchasers from suppliers in the EC).  How we would sell to outside the EU without VAT is something we have not had to do as all our customers are here in the UK. 

However, it can be done.  There are deals in place with some insurance companies suppliers where they bill them via a European company so the insurance companies avoid paying VAT, they are not VAT registered so can't claim any VAT paid back.  This process is called VAT washing so I am lead to believe.

[Wisigoth]

Thanks

for all your help.  My most recent purchase

with “VAT included” was from Amazon UK. 

I looked at other suppliers and even taking off the VAT, they were

charging more.  I always try to buy

stuff in France but sometimes its either not available here or even with VAT

included, it’s cheaper in UK.  I think I’ll

just take Stan’s advice and “grin and bear it”.

[Stan Streason]

I've had another word with my VAT man and done a bit of research.

If you look at Amazon FAQ's under VAT and delivery they say for exports that their prices they quote initially include VAT at UK rates which they then adjust on invoice to the specific rate in the country in question once the delivery details are entered.  Check your invoices to see if you actually have been charged 19.6%, ie TVA you can claim back in the normal way.

Internet retailers are covered under special "distance selling" arangements so the advice I noted this morning may not be fully correct in these circumstances.

[Wisigoth]

That's absoloutely brilliant, Stan. Thanks for that. The invoice I printed out (emailed by Amazon) didn't specify a VAT rate so our accountant would probably have ignored it. I was going to hand that one in. But we got a little self-adhesive note (address peeled off) in the package, which does indeed specify 19.6%. I'll give that to our accountant and hopefully, we'll get that back. I shall buy from Amazon UK with much more confidence in the future.

WELL DONE THAT MAN!