Intercompany transfers from the USA to UK ... VAT?

Post by **GalakStarscraper** » Mon Sep 11, 2006 1:15 pm

Hoping someone deals with this in their normal life and can help me out.

If a company has two divisions ... on in the UK and one in the USA. If the USA division wants to transfer goods (ie no sale occuring) to the UK division ... is there a way to not pay VAT on that transfer?

The goods are meant for resale in the UK which would be the point the VAT would be collected as that is when the goods transfer possession and the sale occurs.

Just curious ... I've tried searching online and cannot find any guides or help on this matter.

Galak

Post by **voyagers_uk** » Mon Sep 11, 2006 1:32 pm

look under articles "Transfer pricing". I am not an expert on goods, cash is a different matter. but goods no.

Orinoco · Post by **Orinoco** » Mon Sep 11, 2006 1:32 pm

I've asked the guy who deals with VAT in our company, and his opinion is that you have to pay the VAT on the goods when they arrive in the country, but you can claim it back when you make your VAT return

Orinoco

hoomin_erra · Post by **hoomin_erra** » Mon Sep 11, 2006 1:33 pm

According to UK Customs ( 0845 010 9000 ), there is no way to avoid paying VAT, as it is charged for the minute the goods hit the shore.

But.....

If you are VAT registered, then you can claim back the VAT that is charged to you.

Seems the VAT between here and there is merely a customs charge, and has nothing to do with where the goods will be sold.

So for eg.

You ship a case and pay Â£3 VAT, you sell said case and customer pays Â£3 VAT.
You claim back VAT for international Transfer.
Â£6 profit WOOHOO.
Got any vacancies??

hoomin_erra · Post by **hoomin_erra** » Mon Sep 11, 2006 1:35 pm

Damn, was nothing there when i started typing!!!

Valen · Post by **Valen** » Mon Sep 11, 2006 1:39 pm

hoomin_erra wrote:You ship a case and pay Â£3 VAT, you sell said case and customer pays Â£3 VAT.
You claim back VAT for international Transfer.
Â£6 profit WOOHOO.

Not strictly true, you will have to pay the inland revenue back the Â£3 when doing the VAT return if you are VAT registered

hoomin_erra · Post by **hoomin_erra** » Mon Sep 11, 2006 1:41 pm

AAahhhh whatever!!!

You know what i mean.

Bloody accountant!!

Tritex · Post by **Tritex** » Mon Sep 11, 2006 1:54 pm

Not fond a way around it yet. The thing is the inland revenue would suggest that if you manufactured it in the US there is no tax levied where as if its produced in the UK there are taxes to cover this. The only way to get around it is to send it as samples or raw materials which will cut down on import tax but doesn't really help with VAT.

Sorry I get stung a lot too!

Joemanji · Post by **Joemanji** » Mon Sep 11, 2006 2:17 pm

Don't declare it? Minis must be small enough to sneak in as gifts.

Post by **GalakStarscraper** » Mon Sep 11, 2006 2:25 pm

Thanks guys ... very helpful ... hmmmmmmmmm ... time for plan B

Galak

Gumbo · Post by **Gumbo** » Mon Sep 11, 2006 10:05 pm

What, dig a tunnel and carry it under the Atlantic? Thats a lot of dirt down the trouser leg! (one for all you Great Escape fans out there

)

l_dauguet · Post by **l_dauguet** » Mon Sep 11, 2006 10:09 pm

First step of plan B is deleting this post

Tritex · Post by **Tritex** » Tue Sep 12, 2006 5:27 pm

l_dauguet wrote:First step of plan B is deleting this post

Agreed as a business you don't want evidence of trying to get around Import Tax & VAT!!

Tomba · Post by **Tomba** » Tue Sep 12, 2006 6:37 pm

Gumboo wrote:What, dig a tunnel and carry it under the Atlantic? Thats a lot of dirt down the trouser leg! (one for all you Great Escape fans out there )

Or build a very big catapult?

There's lots of soggy marshes round where I live to cushion the fall?

If it means more stuff of the quality of what I have already got form IMPACT- I'll even go and pick them up!!!

Er, no. I know nothing about VAT or anything. I have an MA in economics and will try to spend the rest of my life forgetting it all...

Tomba