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Hello, I'm Keith and happy to help you with your question.
On importation of these items into the UK HMRC may impose import duties and VAT. I cannot assist you with import duties as there are simply hundreds of these. If imposed they are not recoverable and would form part of your cost of sales. The VAT imposed on import would be an input tax in ABC's and XYX's VAT accounts. I note that such supplies in the UK are standard rated for VAT so when sold on by ABC and XYZ will have to be invoiced including the tax.
I do hope I have solved your question. It really is very simple. If HMRC impose VAT on importation claim it back on the quarterly return, but import duties will have to be absorbed.
Since all the 3 companies will have VAT numbers on their invoices, would VAT still have to be actually paid and then claimed back, or no VAT will be payable due to the VAT numbers on the invoices. This is in light of the fact that both ABC (UK) Ltd and XYZ (UK) Ltd will have UK Vat numbers and that JKL SA uses a French Vat number but is a Swis company?
My apologies for may be not making my question clear. I am an FCA and in practice for over 30 years. I just would like a 2nd opinion from you with regard to VAT payable within the EU. As you know, sending goods to someone who is VAT registered in the destination EU country, you can zero-rate the supply for VAT purposes. In my client's case, even though JKL is a Switzerland company with a Swiss address they have a French Vat number and they will be sending goods to a UK company.
Yes, I've got that, the horrible reverse charge scenario. One of my companies is still receiving monthly EU Sales Lists when the only EU transaction it ever did was over 20 years ago!
That is not the point. If HMRC charge VAT and import duties on importation, they may or they may not, but if they do reclaim ithe VAT and absorb the import duty.