NETP using UK dropshipping

Hello there, I am a NETP (resident of Canada). I plan to sell on Amazon UK my prints. I will order the prints from an UK drop shipping company (UK DSC). The transaction looks as follows: Customer from UK buys print on Amazon (Customer pays VAT) I order the prints from the UK DSC (I pay VAT to the UK DSC) DSC sends print to Customer It is unclear to me if I need to officially register for VAT as I pay VAT to the UK DSC already, and no goods are physically handled by me. Any advice would be much appreciated!

Hi,

As an NETP there would be a requirement to register for VAT upon the first taxable supply made in the UK. As you are purchasing the goods within the UK then you will own the goods in the UK even if they are not physically handled by you.

You will then be making a supply of goods in the UK via a marketplace and so you will be making UK supplies of goods and there will be a requirement for VAT registration. You can see guidance here:

Basic principles

Non-established-taxable-persons (NETPs) — basic information

Thank you.