Shipping to EU VAT Reg Customer

Discussion in 'International Business' started by n_s_simpson, Aug 1, 2019.

  1. n_s_simpson

    n_s_simpson UKBF Contributor Free Member

    95 5
    Hi All

    Please can I just confirm something...

    We have a customer in Denmark offering to transfer money to us so they can order goods. They have supplied a DK VAT number so we don't have to charge them UK VAT.

    However, we always carry out due diligence so while it is valid and matches their supplied "invoice address" it does not match their delivery address.

    I can't verify that they are really from this VAT registered company so I have said that they will have to reclaim the VAT themselves if they want it delivering to an alternate address.

    My question is whether we're okay shipping to a different address in Denmark if we are able to verify that the VAT registered business is the one placing the order. I assume this would be fine.


    Posted: Aug 1, 2019 By: n_s_simpson Member since: Dec 7, 2012
  2. Import Expert

    Import Expert UKBF Regular Free Member

    310 131
    I don't see it why should be an issue. It's not uncommon for a delivery address to be different to a companies registered address.
    Posted: Aug 1, 2019 By: Import Expert Member since: Feb 1, 2012
  3. MikeJ

    MikeJ UKBF Big Shot Free Member

    5,716 1,655
    Surely the important thing is it has left the country?

    Does the email address tie up with the domain of the company? Can you contact them through the company's website to confirm they are who they say they are?

    I don't think they'd be able to reclaim the VAT as they're not UK VAT registered (not an expert on this, but someone else raised that issue with me on a France/Spain transaction)
    Posted: Aug 2, 2019 By: MikeJ Member since: Jan 15, 2008
  4. WorkingFromHome35

    WorkingFromHome35 UKBF Contributor Full Member

    33 3
    Denmark is in the EU so you do need to charge them VAT. For anyone outside the EU, you should not charge VAT. You can use this tool (I can't post the link as I am a new member - search for VIES on the European Commissions website) to see if the VAT number they have given you is valid and who it is registered to. It is also a useful check on which countries are in the EU for VAT purposes.

    If their information is not validating tell them and make them supply the correct information. If they chose not to give you details you can validate then you will have to charge them UK VAT.

    If their details do validate and you invoice the same company and address as those details then you can keep VAT off your invoices. Instead of a VAT line you say Reverse charge VAT 0%. Technically this is how you should invoice a business in the EU zone but you can only do this if you can validate their VAT details. You have to declare all your reverse charged invoices though so you will need to check this out with your accountant to be safe and there can be an unhelpful cash flow impact of reverse charge invoices so check this out too.
    Posted: Aug 15, 2019 By: WorkingFromHome35 Member since: Aug 15, 2019
  5. The Byre

    The Byre UKBF Ace Free Member

    9,268 3,673
    We are taking B2B here - companies have more than one address.
    Posted: Aug 15, 2019 By: The Byre Member since: Aug 13, 2013
  6. WorkingFromHome35

    WorkingFromHome35 UKBF Contributor Full Member

    33 3
    Yes but they have an official registered address for tax and legal reasons. You can add the tax address to an invoice and ship to another location.
    Posted: Aug 15, 2019 By: WorkingFromHome35 Member since: Aug 15, 2019