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Posted Mon, 25 Sep 2023 08:44:35 GMT by Learning about VAT
A customer of ours is opening 2 branches in 2 different EU countries and wants us to supply these shops. We supply goods to them on consignment (we don't charge the customer at the point where the goods are supplied, we invoice them for cards after they have sold them in the shops). I don't know 1. what to do about documentation the the goods are sent to these countries (the customer does not expect to pay local VAT on the goods supplied), and 2. what to do about invoicing our customer. The amounts involved are small (perhaps £100 to each of the 2 countries country per month). In future it is likely that this customer will open branches in other EU countries. We are registered for VAT in the UK but not in any other countries.
Posted Mon, 02 Oct 2023 15:46:28 GMT by Customs oldtimer
You will need to check what the VAT requirements are in the countries you are supplying. You may ,as a UK business ,find holding stocks or making supplies in an EU country triggers a local VAT registration requirement. Often there is a zero threshold for non EU businesses. The goods will also be subject to export and import formalities and import VAT will be charged if your goods are not zero rated in the country of import. This is applicable whether you are VAT registered or not. On the plus side you are able to zero rate your export from the UK provided you have proof of export from the UK.
Posted Mon, 02 Oct 2023 17:52:40 GMT by Learning about VAT
ADDITIONAL INFO I want to add that although the customer expects to not pay VAT for the goods when they are supplied, they do expect to pay VAT when we invoice them for the goods they have sold.
Posted Mon, 09 Oct 2023 11:36:40 GMT by HMRC Admin 19

The importer in the EU will need to check with their tax authority as how taxes should be handled there.

As you are VAT registered in the UK, you can contact our VAT team to check if UK VAT is applicable or whether you can zero rate these goods as they are being exported.

VAT: general enquiries

Thank you. 

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