Examples of various export scenarios and VAT treatments: Examples involving exports to associated companies outside the EC: Introduction
The following examples detail more complex scenarios which are not as common as those shown in VEXP80100 and VEXP80200.
The structure of each diagram and the terms used in the examples are defined as follows
- dotted lines indicate that the parties are part of the same legal entity either as part of the same company, or companies within the same corporate group
- companies within a corporate group are not registered for VAT as a group, but they are self-accounting and responsible for separate tax returns in different countries, although consolidated group accounts are produced
- the goods supplied by the UK supplier are supplied from within the UK.
Where a company is shown as having a UK VAT registration number this may be because
- taxable activities occur in the UK
- a small admin office of a non-EC company incurs costs (e.g. rental, office) and is voluntary registered (under VAT Act 1994, schedule 1, paragraph 10) to recover VAT costs
- there is one business of many within one legal entity, which has taxable activity in the UK (either with or without a business establishment).