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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
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If a uk based company supplies another Uk based company but

Resolved Question:

If a uk based company supplies another Uk based company but delivers to a company in France- how should i account for the VAT.
I do not know if the French company is vat registered.
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

The company who you supply to is UK based. It immaterial that you deliver in France or anywhere else. Also, it is not your concern that the other company is VAT registered.

You are obligated to charge them VAT. So, when you invoice them, you will charge them VAT as well. As per applicable laws and eligibility, the other company will reclaim / refund for itself. But you will have to invoice them.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
Hello and thank you for your reply.
I receive goods from another Uk company but there are delivered by the supplier company to the French company. However the order is between me and the French company and the French company will be paying the vat in France.
Sorry if this is confusing...
Expert:  Rakhi Vasavada replied 1 year ago.

Hello and welcome again.

No, it is not confusing at all. If you are billing the company which is based in UK, and IF your services / goods are subject to VAT, you WILL have to invoice them with the VAT.

Any company, whether in UK or in France, if they pay VAT, they will have means to reclaim it subject to their eligibility. However, you WILL have to invoice them with the VAT.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

Customer: replied 1 year ago.
I receive goods from a Uk supplier - they invoice me. The supplier, sends the goods to my French customer.
I sell the goods to the French company and I invoice the French company, obviously at a mark up.
Expert:  Rakhi Vasavada replied 1 year ago.

Hello and welcome again.

Yes, I got it. However, I still feel you will have to bill them with VAT.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question.

Warm Regards,

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