Not VAT registered ecommerce

[enry06]

Hi everyone, sorry if I am posting something probably already explained but I couldn't find anything in the forum.
Here we are: I own a UK not VAT registered ecommerce.
Shall I be invoiced with foreign VAT when buying abroad in the EU?

Most of my suppliers are from other EU countries and I guess I should be charged with VAT since I am not registered but I can't find anything really clear on this matter.

 

[StevensOnln1]

If you are buying goods from elsewhere in the EU you will be charged VAT if you cannot provide a VAT number. Services provided to your business should be able to be zero rated.

 

[enry06]

Thanks you totally cleared my mind since when I asked to an accountant he answered...."its a very specific case. let me check and get back to you."

 

[Paul Kelly ICHYB]

And I bet he will also give you a nice little bill!

 

[lesvatadvice]

But, if you sell to non-UK private customers, you will need to be registered under the Mini One Stop Shop.
Different rules apply to B2B and B2C, and also to supplies in the UK, EU, and elsewhere.

 

[enry06]

Thanks guys,
I guess I will look around for a new accountant soon since this one doesn't seem to start in the proper way! while I found the Moss is only of digital services...at least on here (www_gov_uk/register-and-use-the-vat-mini-one-stop-shop) I found:

"If your business supplies digital services to consumers in the EU..."
while I do sell in EU but actual items which I ship each time...and

"If you’re not registered for VAT, you must do this before you can apply for the Union VAT MOSS scheme."

Therefore I guess It's not on my needs by now...

What happen when I do register for VAT?...my foreign suppliers will invoice me without VAT and how am I going to pay?will I only pay the whole VAT i receive on sales?

 

[Scalloway]

If you register for VAT your EU suppliers will invoice you net of VAT if you tell them your VAT number. You will have to add 20% VAT to your sales. You will be able to set any UK VAT on other goods and services against this and pay the difference to HMRC every three months.

 

[k100danny]

as scalloway says you will be invoiced net of vat and this is the amount you pay. you will then calculate vat as normal but will not have the imput vat to reclaim. you sometimes end up slightly better off depending on the country you buy from. some of my suppliers are in the netherlands and vat there is 21% very slight saving but a saving none the less.

you do have to fill in the vat return boxes different though and enter the amount either spent but not paid vat or the amount of vat you didn't pay to your supplier and is due. I don't think i worded that very well but it is quite easy.

 

[enry06]

thanks to all of you for the help, know I see better how it works on international business plus I must find a better accountant!

 

[enry06]

by the way....being not VAT registered, am I allowed to sell abroad?
I wonder I might have to register instead....

 

[Scalloway]

You may have to register in individual countries depending on their rules.

 

[enry06]

Thanks, i checked myself and it seems it depends on the threshold of each country where I sell meanwhile I wait to find a proper accountant!