Post Brexit VAT - dropshipping from spain supplier - spanish customer.

[richofwombwell]

Im looking for a little advice.

I supply a company that has multiple subdivisions In the following EU countries. Spain, Portugal, Italy, Ireland.

For Spain and Portugal I buy the goods from a Spanish supplier and have them dropshipped to the stores in Spain and Italy.

I do not pay VAT on these items (or IVA) and neither do I charge vat or IVA on orders at the moment.

When we leave the EU will I have to start charging VAT on the goods / register for VAT in Spain ?

Such a headache !

 

[Mr D]

First, are you VAT registered?

 

[richofwombwell]

Hi Mr D.

Yes I am VAT registered.

 

[richofwombwell]

bump

 

[AbsoluteVAT]

I am surprised that no Spanish VAT is being charged on the goods which remain within Spain. It sounds like the supplier has treated that sale to you incorrectly (albeit I don't know the exact terms). In any event, the incorrect treatment would not be your issue. Similarly with the goods that go to Portugal, have you verified that you are not responsible for accounting for acquisition tax in Portugal?

Regarding the sales currently, normally I would expect your domestic sales in Spain to be subject to the reverse charge so no registration obligation, however the Portuguese transactions may bring obligations. (unless triangulation is being used?).

The VAT treatment should in theory not change post Brexit, however if you do need to register, fiscal representation may become a consideration.

Richard

 

[richofwombwell]

Hi Richard,

All of the sales are to each representative company in each country. The company itself has multiple companies operating out of each European country. I thought it was triangulation where I am supplying from country a to country B with a supplier from country C.

I think the company is treating the vat incorrectly but its working for me at the moment !

Thanks for the advice on this one I was worried about vat obligations once my European vat number has been removed.