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Posted Sun, 24 Mar 2024 15:00:00 GMT by JP
Hi, I'm looking at setting up an online shop based in the UK that will sell good produced and shipped directly from France. I started looking at various articles - - But it still unclear for me if it's considered Business to Business or Marketplace. The turnover will be less than £85,000 but from what I understand I would still have to register for VAT? Am I understanding correctly: - That the supplier would ship the goods to the final customer with an invoice that I would issue from my UK business and charging VAT? - My UK business would the be liable to pay VAT to HMRC? - The supplier would not charge me French VAT on export? (Is there anything they need to be mindful of for the export? Specific forms, documents, wording? Thanks.
Posted Tue, 26 Mar 2024 09:18:03 GMT by HMRC Admin 21
Hi JP,
If the goods are not coming in to the UK then your sales will be Outside the Scope of UK VAT and there will never be a requirement to register for VAT in the UK
However it is likely that because you are making supplies in the EU there will be a requirement to register for VAT in the EU.
I would recommend contacting the French authorities about your requirements to register for VAT.
Thank you.
Posted Tue, 26 Mar 2024 09:26:25 GMT by JP
Hi, Thank you for your response. Apologies if it was unclear. The goods are expected to be delivered in the UK to final customers. They originate from France and directly shipped to the customers in the UK but sold through my company based in the UK.
Posted Fri, 19 Apr 2024 09:30:52 GMT by HMRC Admin 2

If you are dropshipping goods from the EU to the final customer in the UK, there will be different scenarios depending upon the value of the goods.

If the goods are over £135 and you are the importer of record, then you are making a taxable supply in the UK. If your company belongs in the UK then you will need to register for VAT once you breach the £90K threshold. If you are based overseas then you would need to register for VAT straight away. If your customer is the importer then you will not be making a taxable supply in the UK.

If the goods are below the value of £135 then please see the guidance here:

Changes to VAT treatment of overseas goods sold to customers from 1 January 2021

Thank you.

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