Accounting for sales of a company with VAT registration in Bulgaria and England

Accounting for sales of a company with VAT registration in Bulgaria and England

 

Question:
Hello!

A company registered for VAT in Bulgaria buys goods with an invoice from a Bulgarian company. These goods with a packing list are then exported to England, in an Amazon warehouse for sale through their platform. The same company also has a VAT registration in England and an English VAT number. My question is this: How should the goods that go to Anlia be accounted for, when in practice it is a legal entity with two VAT registrations. As, let me note, in England the company makes VAT and pays it there accordingly. In the Bulgarian company, how should this product, which leaves for England, be accounted for, and should it be included as a sale in the VAT returns for the respective period? Given that the goods that leave actually go to a warehouse in England, it is not a direct sale.

Thanks in advance!

 

Answer:

Hello,

The accounting of the movement of the goods is done depending on the accounting policy that you have adopted. If you want to keep track of how much goods you have available in Bulgaria and in England separately, it is right to create the appropriate analytical skills to reflect the movement of goods between the two warehouses.

On the other hand, according to Art. 7, para. 4 of the VAT Act, this movement of goods is considered to be an intra-Community supply of goods. This means that the company must issue a protocol to be entered in the diaries of purchases and sales for VAT in England.

We hope we have been helpful to you.

Greetings!