UK subsidiary - with EU branches - wanting an EU VAT number. Is that possible?

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Fozzmeister01

Fozzmeister01

Free Member
Jul 17, 2013
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South West England
  • #1
    Hello all,

    I am hoping someone can help me.

    We are a European business and i look after the UK and Ireland branch. Recently, we are getting more and more business from Ireland which is great but I have some questions about the VAT and shipping.

    Our French branch sometimes drop ship for us but don't like to do this because of the triangular shipment - EU - UK - EU.

    It was mentioned to me that " Why don't you get an EU VAT number?" using a country which you haven't got a branch in.
    Is this possible? Is that best practice?

    For example, we don't have a branch in Belgium so could we be VAT registered there and ship France - Ireland?

    What are the implications of this? If someone could explain that would be much appreciated.

    Thank you.
     
    Paul Kelly ICHYB

    Paul Kelly ICHYB

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    • Jan 21, 2008
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  • #2
    Why not ship EU -EU? Why via UK?
     
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    C

    Customs Geek

    Free Member
    • Oct 27, 2022
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  • #3
    I would suggest that you need some specific advice beyond what anyone can provide in a forum. What’s correct will depend on your specific company set up and transactions / movement of goods.
    Uk and EU VAT both work on where the goods are sold and consumed rather than where the business that sell them are based. Goods coming into the UK are no longer able to use the EUVAT triangulation simplifications. Bear in mind a branch is treated as a part of a parent so effectively you can sell something to yourself so there are specific VAT rules for movement between branches .
    Generally there is a requirement for an EU company to register for VAT in particular EU country when the sales reach that countries threshold. If the company is outside the EU then the requirement to register for VAT occurs with the first transaction. Most countries won’t let you register for VAT if you are not trading there.
     
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    Paul Kelly ICHYB

    Paul Kelly ICHYB

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    • Jan 21, 2008
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  • #5
    So shipping to UK, storing and then trans shipping is cheaper, especially with the additional paperwork getting it out of the UK?
     
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    Paul Kelly ICHYB

    Paul Kelly ICHYB

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    • Jan 21, 2008
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  • #7
    I agree.

    I suppose a lot will depend on the volume/value of orders.
     
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    C

    Customs Geek

    Free Member
    • Oct 27, 2022
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  • #8
    MikeJ said:
    Certainly traditionally, companies held stock in the UK to service GB and Ireland (as a whole). Honestly don't know now, but certainly pre-Brexit it would have been the natural thing to do.
    Click to expand...
    They still do but it does have both duty and VAT implications. If it’s not done properly either using bonded warehouses , transit or returned goods relief, duty becomes payable on reentry to the EU. It’s nonsensical but the text of The trade agreement doesn’t allow duty free reentry for EU goods once the goods have left the EU.
    The storage of EU goods in the UK to service Ireland has been a big headache for even big companies.
     
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