Being EU VAT registered and the implication on UK tax payable

[pre0rm]

We're UK VAT registered but are just registering for VAT in Germany, France, Italy and Spain. We will have to collect VAT and pay it over to these countries but all of our operations, suppliers and deductions are in the UK. It means that our UK VAT payable is going to plummet.
Should we notify HMRC of this before our next VAT return? It seems unfair that HMRCs tax take will be almost zero and I'm worried the sudden drop could trigger an investigation.

 

[lesvatadvice]

You are not required to notify HMRC just because your VAT Returns will reduce in value.
But, to pre-empt any enquiry a brief email explanation might be appropriate. But don't expect them to be efficient; so you may receive some contact asking for explanation anyway!
(I do wonder why you are having to register elsewhere in the EU, even though your customers are in the UK?)

 

[Mr D]

HMRC should be used to it. unfair to HMRC is fair to those other countries who by the way are looking at a bigger eu payments bill soon.