Business to business sales involving goods, with or without UK VAT

Selling company (Company1) is an overseas company that has a UK VAT number. It is selling goods to other company (Company2) that is located in the UK and also has a UK VAT number. Although Company1 is not UK based, it has a 3rd party warehouse in the UK. Company1 is about to sell goods outside UK, from EU country, to its end customer Company2 located in UK. In this case, Company1 does not utilize their 3rd party warehouse in the UK and hence the transaction can be considered as an import because it is shipped outside UK directly to Company2. Should UK VAT be included and added to total amount in the invoice?

Who is going to be the importer of the goods into UK, you (Company 1) or the customer (Company 2)? In other words, what are the Incoterms for the shipment?

Hi,

As we understand, the scenario is, company 1 is a non established business who are VAT registered in the UK. They are selling goods to an established UK VAT registered business, company 2, and the goods are moving from the EU to the UK.

If these goods are over a value of £135 then they will be subject to an import declaration and there will be import VAT charged at the border. If Company 1 are the named importer of the goods in to the UK then there will be a taxable supply within the UK to customer 2.

If company 2 are the importer of the goods then there will be no taxable supply within the UK between company 1 and company 2 as the goods will not be owned by company 1 while the goods are in the UK.

Thank you.