I buy from Holland every week. I understand how Quickfile manages the invoices by reversing them, so I then pay a large sum of Vat at the end of the 3 months. However, Holland only charges 7% VAT. Does anyone know if I can register for VAT in Holland and just pay the 7% rather than the 20%, or is this a seriously stupid question?
Thanks
Annelize
Just to clarify, you are VAT registered in the UK? If so, and you supply the supplier with your VAT number then you don’t need to pay any VAT on the transaction at all, I think… I’m not an accountant, just to be clear.
ETA: Just to expand on that as I don’t think it was clear, if you are VAT registered in the UK and buy goods from other EU suppliers who are registered with their local VAT equivalent then if you supply them with your VAT number they can supply the goods with 0% local tax, which you then pay 20% VAT on, which you can then claim back. so total tax paid = 0.
According to this source, the rates of VAT in the Netherlands are as follows:
Standard VAT rate: 21% (Oct 2012)
Reduced VAT rates: 6% foodstuffs, books, pharmaceuticals, medical, passenger transport, admission to cultural and amusement events, hotels, accommodation
As @Lurch mentioned if you provide them with your UK VAT number I believe they should be able to zero rate that for you.
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