Paying a USA business for U.K. held stock Q

[DSLiverpool]

I’m buying some stock from a USA entity that isn’t a U.K. entity.

The stock is here already in storage (they pulled out of the market) and question is

Do I pay VAT ? I can’t work it out, invoice is in $ from USA

Cheers

[AndyAudi]

You should pay VAT if they invoice it (which they probably should)

[Mr Pointy]

It's a bit difficult to do though if they haven't sent him a VAT invoice with a VAT number on it.

Surely the other issue will be you'll have to charge VAT when you sell the items but you can't claim any input VAT.

[DSLiverpool]

Thanks Andy & Pointy

I’m paying 10p in the £ for the stock so I’m ok absorbing the VAT if charged it’s just they can’t charge it.

They sent it over but never actually set up to sell it as a third party was supposed to cover the import but didn’t.

[Ean218]

DSLiverpool said:

Thanks Andy & Pointy

I’m paying 10p in the £ for the stock so I’m ok absorbing the VAT if charged it’s just they can’t charge it.

They sent it over but never actually set up to sell it as a third party was supposed to cover the import but didn’t.

So who paid the VAT and duty on importation?

[DSLiverpool]

Ean218 said:

So who paid the VAT and duty on importation?

The USA company 3 years ago

[AndyAudi]

Mr Pointy said:

It's a bit difficult to do though if they haven't sent him a VAT invoice with a VAT number on it.
.

Quite!

I wouldn’t worry about it too much, HMRC tends to worry more if they lose out.

currently if OP is VAT registered the end user will pay VAT on OP’s sale

(Which would be same net impact if American Co had charged VAT & then OP had reclaimed….)

[DSLiverpool]

Yep just paid it - transfer to USA no vat on agreed figure.
If it goes well I’ll get better advice as this a trial order pending a £500k balance for the rest of the stock.