Recharge UK VAT

Are we allowed to claim UK VAT in full when we purchase goods or services in the UK for our subsidiaries in the EU? This means we will recharge the net amount (excluding UK VAT) to our subsidiaries with zero rated for goods and outside of scope for services.

Hi,
If you are VAT registered in the UK then you do have an entitement to recover VAT in relation to supplies made in the course of your business.
Please see the information below:
Input tax
Background to place of supply of services
Thank you.

Hi, thank you so much for your reply. I should have explained the situation in more detail. If a company in the UK purchases goods (example: 1 PC) for its colleagues at the subsidiary, which is located in Europe (example: France), to conduct daily business, can the UK company still claim UK input VAT? The UK company will invoice the subsidiary in France to recover the cost without adding profit. In a way, in this case, our colleagues are kind of the end users. In addition, if the UK company purchases services such as advertising and marketing solutions that the UK company does not directly benefit from, can the UK company claim UK input VAT?

I agree with services incurred in the UK that are then recharged to EU subs would likely be outside the scope of VAT (place of supply of most services is where the customer is). But for goods, be careful. You can only zero rate goods if they are exported/leave the Country. So if UK company buys some laptops/goods in the UK and ships them to EU/rest of world subs, then they can be zero rated (but potentially subject to import duty at destination), but if the laptops/goods remain in the UK and used either by UK staff or EU staff based in the UK, then as the laptops aren't leaving the UK, you'd have to sell the laptops to your EU subs plus UK VAT as you do not have proof of export.

Hi.

As long as you are making purchases in the course of your business and this is related to your taxable supplies then you can recover this VAT as your input tax.
We can't give definitive answers as regards input tax which you can recover so it is always important to consult the guidance and make your best judgement regarding the recovery.

VAT guide (VAT Notice 700) Section 10