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Posted Wed, 22 Nov 2023 10:13:07 GMT by
Hi, I'm trying to get a definitive answer on a couple of scenarios. We are a UK company registered for VAT. We have a supplier based in the EU who ship directly to our customers. We deal with UK import/VAT via our EORI etc. but are getting conflicting advice when we sell to EU customers. If we ship directly from our EU factory to an EU VAT registered company we provide a 0 VAT rated invoice, we use our suppliers courier account (UPS). If we ship from our EU factory to an EU customer who is not VAT registered - how would the VAT get resolved? I'm presuming that the courier system would deal with this but would charge VAT at the value of the goods that we pay not at the value we have charged from the UK. Has anyone experienced a similar issue?
Posted Wed, 22 Nov 2023 17:24:39 GMT by
Hi GT5000, Which sales channel/channels are you using to sell the goods ? If you are selling online, are you selling over your own webshop or over the marketplace, platform.. ?
Posted Thu, 23 Nov 2023 08:05:57 GMT by HMRC Admin 20 Response
Hi GT5000,
If the goods are being shipped from your factory in the EU to consumers in the EU then this will be Outside The Scope of UK VAT as the goods are never in the UK.
However there will be a supply within the EU on which VAT would need to be charged.
If you own the goods in one member state and sell them to a consumer in another member state then this will be classed as a distance sale 
There is a One Stop Shop System within the EU which allows you to account for a VAT in a single member state rather than having to register in all the member states where you make supplies to. Please see the guidance below:
VAT on e-Commerce - One Stop Shop
Thank you.
 

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