Sending goods to Denmark, VAT help?

JasonG · Oct 16, 2009

A customer in Denmark has purchased an item on our website costing £1000. As we don't have VAT set up for Denmark, VAT was not added to the transaction.

I have read that it is ok to invoice to Denmark without VAT as long as the customer can provide me with a valid MOMS registration number? I have requested that from the customer. I don't think it is a business purchase however, therefore he may not have a MOMS number?

Can anyone shed any light on this situation, offer any advice?

Regards

Jason

NuBlue · Oct 16, 2009

To my knowledge any goods shipped (billing address makes no difference) to an EU member state should have VAT charged. Unless the purchaser has a valid VAT number.

Dawg · Oct 16, 2009

Read this page here, and if necessary follow the links to the HMRC site.

Basically:
"you will need the customer's VAT registration number and commercial documentary evidence the goods have been removed from the UK."

But, if they are not registered:

"For dispatches (sales) to a non VAT-registered business or consumer in another EU country, VAT is charged in the country from which the goods are dispatched. However, if you are responsible for delivery and the value of your dispatches exceeds the distance selling threshold set by the country you are dispatching to, then VAT is due in that country. For example, if you sell to non VAT-registered German consumers you charge VAT at UK rates. If you are responsible for the delivery of the goods to non VAT-registered customers within the EU, you should read the section on distance selling in Notice 725 on the HMRC website"

Remember:
a) it has to go on your VAT return,
b) this is the simplified version, ha ha.

JasonG · Oct 16, 2009

Thanks for the helpful replies.

I have spoken to my customer again, he is just a private customer and not a business, and he's claiming that he's bought lots of items from other EU states such as Germany and has never paid any sort of VAT?

NuBlue · Oct 16, 2009

Could be true, but I would be careful as the German company may be in the wrong so copying them may not be advised.

HM Revenue and Customs have a VAT department who would probably be worth asking. You can get their details here:

http://www.hmrc.gov.uk/vat/

Hope that helps

mycoolgadget · Oct 17, 2009

Hi Jason, the customer need to pay VAT in the country he is buying from, so you need to make an invoice with 15% vat included.

Its your responsbility that the price is correct with VAT when your customers buy from you.

Trying to go around and ask for VAT/MOMS number from a private customer is not the way to do it.

Pretty sure the customer will pay as he is from Denmark and they are used to 25% MOMS/VAT and also the £ is weak at the moment compared to the danish krone. That means a saving nearly of 20% when buying in UK with danish krone at the moment

So tell you made a fault and send the correct invoice, he will understand and you have made the correct customer service i would believe.

All the best

AndyP · Oct 17, 2009

mycoolgadget is correct, your customer (currently) is not.

Search

Search

Sending goods to Denmark, VAT help?

JasonG

NuBlue

Dawg

JasonG

NuBlue

mycoolgadget

AndyP

Similar threads

Latest Articles