No you are not correct
Ask knc and other mining European company
How you do the business's
It is not the mining companies that say how business law goes. It's the normal Tax-law.
We've been running business for 40 years in our family so I do know how the law goes. Just directing to the right path nothing else.
Cheers.
Have a nice day.
I agree, that's how I know VAT to work... as a VAT registered company, you'll pay the VAT on the purchase and submit your VAT return at the end of the tax year to claim it back...
Actually we have all been over this a million times.
He is talking about buying/selling from companies in other countries and EU VAT rules.
There is an option if a VAT registered company buys from another VAT registered company in a different EU country, if the buyer supplies their VAT number to the seller then the seller does not have to charge the VAT.
e.g.
http://www.hmrc.gov.uk/vat/managing/international/exports/goods.htm Zero-rating goods sold within the EU
If you're sending goods to someone who is genuinely registered for VAT in the destination EU country, you can zero-rate the supply for VAT purposes, provided you meet all the conditions below.
To account for the VAT on zero-rated sales to another EU country, include the value of the goods and services in your VAT Return in Box 6 and Box 8 in the usual way. If any VAT is due in the destination country, then your customer pays it to the tax office in their country.
You can only zero-rate these supplies when all these conditions are met:
the goods are sent out of the UK to somewhere in another EU country
whoever you're sending them to is genuinely registered for VAT in another EU country
you get their VAT registration number - including the two letter country code - and show it on your sales invoice
you've got paperwork showing that the goods have gone out of the UK - 'evidence of removal'
you dispatch the goods and get evidence of removal within a set time - which is normally three months
Evidence of removal will include a number of things like:
- customer orders
- correspondence with customers
- sales invoices
- packing lists
- invoices from hauliers
- bank statements
- consignment notes showing the goods have been received in another EU country
These documents must show details of:
- your business
- your customer
- the goods and their value
- the method of transport and route
- where the goods are going to
The description of the goods mustn't be vague.
If the evidence is unsatisfactory, then you may have to pay all the VAT. You must keep all the evidence for six years and show it to HM Revenue & Customs (HMRC) if they ask to see it.
If you can't get this evidence in time you must account for VAT on your return when the time limit has passed.
