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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am buying a used cherry picker possibly from Europe and

Resolved Question:

Hi I am buying a used cherry picker possibly from Europe and would like to know how it works with the paperwork concerning VAT as is exempt if exporting.
If extra info is required please ask.
John
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello John, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Sales within the EU are not exports, but standard rated supplies. If the seller has the VAT number or equivalent of the buyer then the reverse charge system applies. Under this system the supplier charges VAT on their invoice and accounts for it as output tax, but immediately enters the VAT as an input thus effectively making it a zero rated supply. The seller makes periodical EU Sales List returns, at least he does in the UK! The buyer has a VAT invoice with output tax which can be reclaimed in the usual way on the quarterly return as an input. Don't blame me, I didn't invent this crazy system! I do hope I have shed some light on VAT within the EU.
Customer: replied 1 year ago.
Hi yes I used the wrong word in export. But only trouble for me is I am not VAT registered in UK as turnover is still under the limit but is there an other way.
John
Expert:  bigduckontax replied 1 year ago.
Unfortunately John no, unless of course the seller is not VAT registered either, or not resident in an EU state, or it is a private transaction. Many EU countries view our turnover threshold with deep suspicion. In Germany, for example, just one Euro of turnover exposes a trader to their VAT equivalent! I am so sorry to have to rain on your parade.
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Customer: replied 1 year ago.
Well thank you for your informed answer
John
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.