Intercompany recharges of hotel bills

[steveh]

Dear Marie,

I know there are many postings here on inter company recharges, but I would like your views on the following issue:
An entity based in Germany has received a hotel bill in relation to a European conference that was held in Germany for the groups sales managers. Each EU entity is only VAT registered in it’s respective country. The German entity needs to recharge that hotel bill as follows:
– The German entity takes 50% of the cost
– 30% has to be recharged to the UK entity
– 20% has to be recharged to the Dutch entity

Should the German entity recover all of the VAT and recharge the relevant costs & VAT to the other entities who can recover the VAT via an 8th Directive claim?

Many thanks.

[Author]

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