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Thank you for your speedy response and clarification!
Forgot to ask, do I need to register for UK or EU VAT if I use DDP incoterms from UK to EU and other countries, b2c and b2b?
From what I understand, using DDP would make me the importer of the record, but the shipping company would take care of the import VAT and so I wouldn't need to register?
I hoping someone can help. There's a lot of info out there for VAT registered businesses, but almost none for businesses like me who are NON Vat registered.
I'm a NON VAT registered (no where near the £85K threshold) artist and a Sole Trader.
I have an e-commerce website and am set up to sell B2C, to the EU and further afield. From what I understand, as long as I use DAP (delivered at place) Incoterms and the buyer is the importer of the record and pays the import VAT, which they would under these incoterms, then I do not need to register for VAT in the UK nor in any countries which I sell to.
My first question is, do the same above rules apply when I sell/export to B2B?
For example. I'm in talks with an EU art gallery who are VAT Registered and would like to sell some of my artworks in their gallery. We are discussing two possible ways of doing this...
1. They buy artworks from me at a discounted price and sell them in their gallery. So they pay me for the artworks, I send them by post, they pay the import VAT (DAP incoterms). They sell them in their gallery for more than they paid me, plus VAT.
If I used this process, do I need to give the value of the goods (for customs purposes) at the discounted price I sold them to the gallery or the price without discount?
2. On a sale and return basis. I send them the artworks, which remain my property until sold. When an artwork is sold, the gallery takes payment on my behalf, and asks me for an invoice in the name of the customer. The gallery takes X amount of commission +VAT and pays me the remainder.
For this scenario, would the Gallery be required to pay import VAT when I posted them the artworks? And if they returned an artwork, would I be required to pay Import VAT?
Are the above sales processes feasible/compliant for me as a NON Vat registered business?
Thanks in advance.