VAT EU / International Registration

Hi! I am a UK VAT Registered sole trader that sends goods mostly within the UK which i charge and pay the VAT on to HMRC, but do i need to register for VAT in an international country or with an EU country if i ship internationally? I send my exported items via DDU/ DAP so there is no VAT paid by the customer on checkout, this is paid on import by them once it arrives in their country, but i wasn't sure if i still needed to register for VAT in the destination country at a certain point even if im using DDU/ DAP Thank you

Hi,

We can only provide guidance regarding UK VAT. Please contact the relevent VAT authority for the countries in which you are supplying to in order to get advice specific to you and their own

rules.

Thank you.
 

Hi Each country will have its own tax rules so you need to check what local requirements are based on where you are deemed to be making a supply. Not all countries have VAT . It is however unlikely in the EU if your customers are paying the taxes including import VAT when the goods are imported that you will have any liability to register for VAT in those EU countries.

Thank you for the replies here. The EU customers are paying VAT upon import when the item reaches their country, I just wasn't too sure if the VAT threhold of 10,000 euros still apllies if you sell from the UK and only ship and store goods from the UK to EU customers? So if i sell over 10,000 euros in sales to EU customers within the year would i need to register for EU VAT via OSS even though im located in the UK and don't charge any VAT to customers outside of the UK? The distance selling rules are tripping me up alittle, thank you for the help!

As the UK is no longer in the EU the intra EU community distance sales rules do not apply to UK businesses. Instead Import VAT applies at the local rate of the country the goods are sold to. You zero rate UK VAT as the goods are not sold to UK customers.

Hi,
The distance selling rules and the requirement to register for OSS will only be required if you are selling goods to consumers in the EU from Northern Ireland. You can see the guidance here:
Supplies to customers (including private individuals) who are not registered for VAT
If you are selling goods from the UK to overseas consumers then these will be exports and the way they are treated for VAT purposes will depend on the value of the goods being sent. Please see the guidance below:
VAT on goods exported from the UK (VAT Notice 703)
EU VAT e-commerce package
Thank you.

I'm German. My company is VAT registered in Germany. I'm planning to sell services (engineering and online courses) to VAT registered UK businesses, more than GBP 1,000 per year but no more than GBP 20,000 per year. According to what I know so far, my company needs to VAT register in the UK, and apply "reverse charge" on our invoices. But I'm confused about the GBP 90,000 threshold. Does my company have to VAT register even though we will stay well below the GBP 90,000 threshold?

If I’m a UK-based business selling and shipping goods directly from the UK to EU customers, with import VAT being paid by the customers in their respective countries (via DDU/DAP), do I need to register for VAT in the EU? Does the €10,000 threshold for OSS registration apply in this case, or is it irrelevant since the UK is no longer part of the EU?

Hi Julius Muschaweck,
If you are an overseas business and providing these services to UK businesses, then the VAT would normally be accounted for by the UK business customer and your business would not be able to register for UK VAT. You can see the guidance here:
Reverse charge
Non-established taxable persons — basic information
Thank you.

Hi Calcvat,
The rules for OSS will only apply if the goods are being sold to consumers in the EU from Northern Ireland. You can see guidance here:
VAT One Stop Shop scheme
If you are selling goods from the UK to customers outside the UK then these will be exports for VAT purposes. Please see the guidance below:
Conditions and time limits for zero rating
If you are selling goods below a value of £135 to consumers in the EU, then please see below:
EU VAT e-commerce package
Thank you.