My company recently became VAT registered, so this has only just become applicable, but I wondered what people's advice has been regarding reclaiming VAT back from Umbraco purchases, as a UK company?
The reason I ask is that I contacted my accountant just now and he said that if Umbraco has my VAT number (which they do) they should invoice my company without VAT, otherwise it's not possible to claim the VAT back on my purchse. I didn't realise this was the case, and thought it was just like any other UK company, but apparently not.
I just wondered if anyone else had tackled this issue and had any other advice? I would really like to claim the VAT back as 25% is not an insignificant amount.
Here are some e-mails we've had with Niels Hartvig about the Codegarden tickets.
Email 1:
Hi!
You'll need to claim it back from the Danish Tax authorities (just like any other business expense bought in another EU country that contain local VAT). If in doubt it's best to consult your auditor for the correct procedure.
Kind regards,
Niels...
Email 2:
Hello,
This is not a virtual object but a conference on Danish soil. Therefore we have to add Danish VAT - that goes for all companies within the EU. The rules are different when shipping goods between countries which we don't in this case. The principal is the same as if you booked a hotel in Denmark for instance.
I've just called the UK VAT office and this is what they had to say, which kind of amalgamates Niels' mails... Basically as it's an event (as opposed to a product) which is occuring on Danish soil, then Umbraco need to charge VAT. As it falls outside of the UK VAT jurisdiction, then it's not possible to claim back the VAT from HMRC. To claim it back one would need to contact the Danish VAT office and make enquiries there, although the guy suggested that it probably wasn't possible (or at least it'd be very difficult) to reclaim anyhow.
The documentation reference for anyone who can be bothered to read through it is Section 8 of the Public Notice 741a.
Hope this helps others, even if it does seem to be a negative.
VAT on purchases from Umbraco
Hi,
My company recently became VAT registered, so this has only just become applicable, but I wondered what people's advice has been regarding reclaiming VAT back from Umbraco purchases, as a UK company?
The reason I ask is that I contacted my accountant just now and he said that if Umbraco has my VAT number (which they do) they should invoice my company without VAT, otherwise it's not possible to claim the VAT back on my purchse. I didn't realise this was the case, and thought it was just like any other UK company, but apparently not.
I just wondered if anyone else had tackled this issue and had any other advice? I would really like to claim the VAT back as 25% is not an insignificant amount.
Thanks all.
Here are some e-mails we've had with Niels Hartvig about the Codegarden tickets.
Email 1:
Hi!
You'll need to claim it back from the Danish Tax authorities (just like any other business expense bought in another EU country that contain local VAT). If in doubt it's best to consult your auditor for the correct procedure.
Kind regards,
Niels...
Email 2:
Hello,
This is not a virtual object but a conference on Danish soil. Therefore we have to add Danish VAT - that goes for all companies within the EU. The rules are different when shipping goods between countries which we don't in this case. The principal is the same as if you booked a hotel in Denmark for instance.
Best,
niels...
Jeroen
Thanks Jeroen,
I've just called the UK VAT office and this is what they had to say, which kind of amalgamates Niels' mails... Basically as it's an event (as opposed to a product) which is occuring on Danish soil, then Umbraco need to charge VAT. As it falls outside of the UK VAT jurisdiction, then it's not possible to claim back the VAT from HMRC. To claim it back one would need to contact the Danish VAT office and make enquiries there, although the guy suggested that it probably wasn't possible (or at least it'd be very difficult) to reclaim anyhow.
The documentation reference for anyone who can be bothered to read through it is Section 8 of the Public Notice 741a.
Hope this helps others, even if it does seem to be a negative.
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