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VAT Question

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VAT Question

NaughtyMonkey
I hope someone here might be able to help me with this. My company has a sister company in France. I need to replace their server and want to make sure we are following the applicable laws. I plan to purchase the server through our Dell business account and ship it to them once it has been setup. Do we have to pay VAT on this server?

We are not selling it to them, but the company is a separate entity.
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    TheChas

    This is really a question for your company export administrator or legal team.

    There are a large number of issues here. Many of which depend on the specifics of the legal language of your companies.

    Perhaps an even bigger question, is who are you working with for the export licensing?

    If you are a small business that does not have an export administrator, or in house legal consul, it may be cheaper to have the sister company order the server themselves and then fly over and setup the system after it arrives.

    Even the software you install on the server may require an export license.

    You have too much risk and too much at stake to rely on advice from a peer forum.

    Chas

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    NaughtyMonkey

    I would rather have them order it and fly over there and take a vacation than them coming here.

    I am really only concerned with VAT. Only Windows will be on the machine and export regulations have never hindered in that before.

    There are some here that I would take their advice on VAT, others I wouldn't.

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    You will be charged with VAT on the machine (even if it is for yourself, you will most probably have to pay customs). If you are doing any kind of work on this computer, hardware/software or both and then shipping it over then you will be liable for the VAT, unless you pass the VAT on to the Sister company. Like TheChas said it would be easier for you if the sister company bought it and then you go over there to fiddle around with it, cheaper to for you.

    Please post back if you have any more problems or questions.

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    NaughtyMonkey

    is charged on anything going into the country, not just on sales. Okay, works for me.

    The machine itself is $800 less if I purchase it, so depending on the VAT and export costs will determine what is cheaper.

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    0 Votes
    TheChas

    This is really a question for your company export administrator or legal team.

    There are a large number of issues here. Many of which depend on the specifics of the legal language of your companies.

    Perhaps an even bigger question, is who are you working with for the export licensing?

    If you are a small business that does not have an export administrator, or in house legal consul, it may be cheaper to have the sister company order the server themselves and then fly over and setup the system after it arrives.

    Even the software you install on the server may require an export license.

    You have too much risk and too much at stake to rely on advice from a peer forum.

    Chas

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    0 Votes
    NaughtyMonkey

    I would rather have them order it and fly over there and take a vacation than them coming here.

    I am really only concerned with VAT. Only Windows will be on the machine and export regulations have never hindered in that before.

    There are some here that I would take their advice on VAT, others I wouldn't.

    +
    0 Votes

    You will be charged with VAT on the machine (even if it is for yourself, you will most probably have to pay customs). If you are doing any kind of work on this computer, hardware/software or both and then shipping it over then you will be liable for the VAT, unless you pass the VAT on to the Sister company. Like TheChas said it would be easier for you if the sister company bought it and then you go over there to fiddle around with it, cheaper to for you.

    Please post back if you have any more problems or questions.

    +
    0 Votes
    NaughtyMonkey

    is charged on anything going into the country, not just on sales. Okay, works for me.

    The machine itself is $800 less if I purchase it, so depending on the VAT and export costs will determine what is cheaper.