Reselling damaged goods and VAT

[ptdirecor]

Hi,

I recently received a returned good and issued a replacement for the original customer. The nature of the product meant that reselling the initially damaged good was possible. Another customer expressed an interest in purchasing it and has agreed to pay 360 euro for it.

This money will go to the manufacturer of the good. What I would like to know is can I just take the 360 euro from the customer and transfer the money to the manufacturer or do i have to charge VAT, basically how should I account for this transaction. The manufacturer is based in the Czech republic.

Cheers

 

[mcaul]

Depends on whether you sold it on behalf of the company in Czech republic or as a normal sale in your own business.

If the company in Czech republic still has to invoice the goods, then they can invoice directly to the customer and if the customer has a vat number it can be invoiced vat free.

If however you have paid the company in czech rep, then you are re-selling the item and vat applies.