Sales of goods between two UK VAT registered businesses with no VAT. Is this possible?

Hi, We have a German supplier who has recently contacted us saying that they have incorporated in the UK and they will be supplying us under their GB VAT number. They supply us with goods from Turkey under FOB terms to the UK and also to North America. They have asked us if we are ok to receive invoices with no VAT as this is what they have been advised by their CPA. I am not particularly sure they should be using their GB VAT ID and I have not come across a situation like this before. I understand the onus is on them to bill correctly but I would like to know the correct treatment of these two scenarios (GB and North America) for better understanding. What should an invoice for UK goods look like and what should an invoice for the North American goods look like?

Hi,

If the supplier sells goods and they are sent from Turkey to North America, then these will be outside the scope of VAT which would be reflected on their invoice.

If they send goods over a value of £135 to you in the UK then it will depend who the importer of record is.

If the supplier is the importer of the goods in to the UK then they will need to charge UK VAT.

However, if you are the importer of the goods in to the UK, then the supplier will not charge VAT and it will be your responsibility to pay any import VAT on the goods once they enter the UK.

If the supplier sends goods to you in the UK and the value of the goods are below £135 then please see the guidance here:

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

Thank you.