Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : Point of entry

17 July 2018
Issue: 4656 / Categories: Forum & Feedback

Entitlement to register for VAT to reclaim input tax incurred by UK company.

My UK company is a retailer of items that are standard-rated for UK VAT purposes.The goods are sourced from outside the EU so we are invoiced by non-EU suppliers for the products which they dispatch into our non-EU base. For practical reasons we centralise the goods there. They first enter EU territory when a sale is made to EU/UK businesses.

I understand that purchases of goods (which do not enter the UK) from our non-EU suppliers are outside the scope of UK VAT. Sales of goods located in our non-EU base and sent to EU/UK customers are also outside the scope of UK VAT (given that the sales are not removed from the UK). The EU/UK customer will however incur VAT at the EU/UK point of entry which he may be able to recover.

VATA 1994 s 26(2)(b) states: ‘The amount of input tax for which...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon