Dropshipping Query

I have online stores and they all use dropshipping. I have a query with one as the items are all over £135. Customer A orders goods from the website which has a .uk address and is on the Etsy marketplace. when they order the goods the order is sent to a fullfillment service in the US. Once the order is put through on the website I have no further involvement save hat I have to pay the fullfillment service for the items including VAT. As Customer A will be the importer would I be right in thinking that I have no liability for VAT and cannot claim the input VAT back.

Hi,

With a supply of goods, the place of supply is determined by where the goods are located when supplied. If you are making a supply of goods while the goods are outside the UK, then this is outside the scope of UK VAT. Please refer to VAT Notice 700, section 4.8.2.

VAT guide (VAT Notice 700)
VAT and overseas goods sold directly to customers in the UK

Where goods are being sold through an online marketplace please refer to the guidance here:

Businesses selling goods in the UK using online marketplaces

You can find the rules regarding being able to reclaim UK VAT as input tax in VAT Notice 700 sections 10 to 13.

VAT guide (VAT Notice 700)

Thank you.

Thanks for this can I check on thing VAT Notice 700 says that I can claim input VAT where the supply is outside the scope of VAT but where I would not generate any output VAT, or any output VAT is either below the VAT threshold or relates to supplies through a marketpalce where they account for the VAT, can I still claim the output VAT.

Hi Michael Vidal,
Input tax can only be claimed where the conditions are met below:
10. Introduction to input tax
Thank you.