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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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What is the relationship between input and output VAT in this

Resolved Question:

What is the relationship between input and output VAT in this situation:
I want to sell computer/server solution to a VAT registered company in Europe (specifically Finland).
With a UK sale I would usually be able to charge my customer VAT, but also claim VAT for the stock used to build the product.
However, with the reseller is based in Finland is VAT registered and we think we can sell the item to him at 'zero-rate'.
Does this mean I can't claim VAT back for the stock in the UK?
The relationship confuses me.
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.

Hello and welcome to the site. Thank you for your question.

You will be pleased to note can claim VAT back for the stock in the UK as it is a taxable supply but carries zero-rate VAT being a sale to VAT registered customer in EU member state.

I hope this is helpful and answers your question.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Thanks for the information, this is really helpful!

Expert:  taxadvisor.uk replied 3 years ago.

I thank you for accepting my answer.

Best wishes.