Reverse charge on services from overseas suppliers?

[nick34785]

We use a fulfillment service in USA to store our products and ship our orders. They invoice us in USD. Should we reverse charge and pay VAT on these invoices?
Also, we pay an overseas contractor for their work for us that they do from overseas. Should this also be reverse charged?

 

[ArabianNights]

So basically, you would have to act as if you are both the supplier of this service and the customer. When you get invoiced by the American company, you put it as both a sale and a VATable expense, so you put it as if you have been charged VAT. It then balances out somehow against your VAT bill. I do the same abroad too. Seems so complex, but it's not really.

 

[KevinRockett]

Or better still, send (export) from the UK and pay no VAT at all and at a fraction of the operating/shipping costs.

Try etail-USA.com - 3 - 4 day delivery from UK. Keeps it simple.

 

[nick34785]

Or better still, send (export) from the UK and pay no VAT at all and at a fraction of the operating/shipping costs.

Try etail-USA.com - 3 - 4 day delivery from UK. Keeps it simple.

Thanks for your suggestion, however we would reclaim the VAT as mentioned by ArabianNights, so it doesn't really matter.

I'm not familiar with etail-USA, their service seems interesting. They don't mention anything about import duty/reporting. For more valuable shipments this must surely be reported in some way. And I wonder if they have a US address that can receive returns.
Still, shipping directly from USA is cheaper and arrives quicker, but it would simplify things to not have separate stock in the US.

 

[KevinRockett]

Hi Nick,

Yes, they do handle the import duty/reporting and they do have a US address (in Valley Stream New York).

Kevin