How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 2982
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

We are a registered Jersey CI Company not liable to pay VAT

Customer Question

We are a registered Jersey CI Company not liable to pay VAT but registered GST.
We have sold goods to a Jersey resident and delivered the goods to France. The goods were sent direct from the Suppliers in Portugal to France. The Portuguese Supplier has charged us 23% TAX.
The Client has a French Company and can claim back the French Tax but not the Portuguese Tax. If we are to give the Tax amount to the client we need to give him the Invoice showing the Cost price of the Goods. This needs to be avoided as we do not wish the client to see the profit margin. How do we deal with this?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
, I'm Keith and happy to help you with your question.
I suggest that you issue an invoice showing an appropriate cost price which will yield the same income, but disguise the real acquisition price. In other words fudge it. Under Jersey GST rules you are permitted to issue a simplified invoice, see gov.je advice sheet below:
http://www.gov.je/TaxesMoney/GST/GSTCustomers/Pages/PayingGSTJersey.aspx
I do hope I have shown you a way forward in this matter and provided you with a possible solution.
Customer: replied 1 year ago.

,

Thank you reply. The GST part is not an issue as the goods did not come into Jersey. The goods were transported direct from our Suppliers in Portugal through to France. It is the Portuguese Company that has raised the TAX on their Invoice. If we had a French registered Company we could claim back the TAX and the Client would not be involved at all. The client does have a French registered Company and therefore he can claim the TAX back. The TAX rate is based on the Cost price and is therefore easily calculated by the Client.

Any ideas how we can get around this?

Expert:  bigduckontax replied 1 year ago.
The only suggestion I can make, as I have already told you, is to fudge the invoice to disclose a higher cost price and not mention the GST at all. The client will not see the Portuguese trader's invoice anyway. If however, the supplier has sent an invoice to the client with the goods then you may be in a spot of bother.
Why are you so concerned about revealing your profit level in any event? Just a thought, you have provided a service and are presumably permitted to extract an element of profit from the transaction.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Last | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    6894
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    1772
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    464
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2596
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    268
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions