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Posted Thu, 17 Aug 2023 23:01:33 GMT by
Hello, I would like to confirm whether the scenario below falls under zero-rated VAT and registration for VAT is required or not: I will buy goods from a company in the EU and sell them to another company outside of the EU. The sales agreement with my customer will be ex-works at the EU supplier's factory location.Basically, the shipping to outside of the EU will be the responsibility of my customer. Would you please confirm if the VAT I will be charging should be zero, since goods will never enter the UK and do I need to register VAT in the EU as the supply of goods will be in the EU? Currently, my supplier in the EU is asking for my VAT number, which I don't have as my business is not VAT registered at the moment. Will the VAT be zero on the products I will purchase and I would appreciate it if you could guide me on whether I should ask for VAT exemption? Thank you.
Posted Mon, 21 Aug 2023 08:43:08 GMT by Jay Cooke
Sounds like you take possession of those goods in the EU location where you buy the goods. Place of supply of goods is where they are at time of sale, so you will need an EU VAT registration where your stock/supplier is based. These sales are not made in the UK and so do not need a UK VAT registration/turnover does count towards UK VAT threshold. Your EU supplier will charge you their local VAT rate unless you supply them with an EU VAT number.
Posted Tue, 22 Aug 2023 13:43:59 GMT by HMRC Admin 32 Response
Hi,

If the goods are never in the UK then these supplies would be Outside the Scope of VAT and so no UK VAT would be applicable.
However there could be a requirement to register in the EU member state where the goods are supplied from and so I would contact the relevant member state

Thank you.

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