hi

here's the scenario:

- 2 uk registered ltd companies (C1 and C2),
- C1 buys goods in europe and re-sell them in the uk to C2
- C1 invoice C2 for the goods in euros (to keep an eye on currency fluctuation)
- does C1 need to add VAT on the invoice, given that it's in euros?

thanks
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if the goods/services are supplied/delivered in the UK, then, yes, assuming they are VAT registered!
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thank you consultant

yes the goods are delivered to the uk from mainland europe and both businesses are vat registered

for vat returns and for accounting purposes, do you have to use the exchange rate to gbp as at the invoice date or the current exchange rate when sending the vat return form?

thank you
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not sure - I would suggest calling HMRC helpline and then letting us know what they say!
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VAT 700 states that the amount of VAT must be shown in sterling:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_000099#P171_13244

As consultant says, you would do well to get clear guidance on this.
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thank you consultant
for vat returns and for accounting purposes, do you have to use the exchange rate to gbp as at the invoice date or the current exchange rate when sending the vat return form?

thank you

I think, You have to convert value of supply into sterling exchage rate at the time of supply.
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thank you all,

spoke to HMRC and they said the invoice has to show values in both currencies at the current exchange rate
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