Dropshipping and VAT?

[ssh]

Hello,

UK VAT registered business is looking to sell physical goods to consumer in France.

- Company A is a seller (VAT registered in UK)
- Company B is a manufacturer (VAT registered in Germany)
- Company C is a consumer (not VAT registered in France)

Company B (Germany) will invoice company A (UK) and ship goods on company's A behalf to company C (France).

1. Is company A (UK) obligated for VAT registration in Germany or France?
2. Does company A (UK) show its German/French VAT number and charge German/French VAT on its UK invoice issued to company C (France)?

Thank you for your answers.

 

[faradaykeynes]

1) Dont need to register for vat in Germany , might have to in France under distance selling regulation, check limit with french authorities
2) Company C is not vat registered hence you cannot make invoice zero vat therefore have to charge vat

 

[ssh]

@faradaykeynes

Thanks for your quick reply. Yes, you're correct, company A would need to register for VAT in France.

How about invoicing, can company A (UK) charge French VAT rate on invoice issued to company C (France)?

 

[faradaykeynes]

you have to charge UK vat to company C

 

[ssh]

@faradaykeynes

I believe you could be wrong.

As I sad, company A (UK company) is registered for French VAT, this simply means that is obligated to charge French VAT on its invoice issued to French company.

It's the same situation as when UK company reaches €35.000 turnover from sales to Spain - selling to private consumers. After mandatory registration in Spain, UK company is obligated to charge Spanish VAT on all sales to private consumers in Spain.

 

[faradaykeynes]

If you are vat registered in France yes else charge UK vat