Please note:
In Example 8 the quarter to 31 March 2018 used in the lecture is changed to 31 March 2020 in the FA 2019 Study Notes
Group VAT Registration, transactions with overseas customers and suppliers – ACCA Taxation (TX-UK) VAT lecture part 7
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Good evening from Italy. I simply want to use this medium to say a big thank you for your substantial and invaluable contribution towards our ACCA journey. Your comprehensive lectures, lucid explanations and relevant materials helped me pass the UK-TX exam. I am deeply appreciative to everyone at Open Tuition. A thousand thanks. God bless you!
Can you redo the explanation on import from within the EU countries? The more you explained, the more it makes me confused. Can you explained it more straightforward?
@lukayl
copy and paste this question on the ask the tutor forum, if you want to get this doubt of yours cleared! 馃檪
What I understood is if you but from goods from China( non EU), it is considered as input tax and have to pay HMRC the 20% VAT on it at the entry. If you buy from Germany(EU), you consider it as output VAT and input VAT at the same time, which cancel out immediately. Only exemption is when you make an exempt supplies from it. Where you are not supposed to claim input VAT. The reason is when you buy from China and sell it it becomes more expensive. Its is all about input VAT and Output VAT. Again that’s what I understood and will practice more to be certain.
Buy* ( not but) first line
wanner learn more