VAT and customs for UK Reseller B2B dropshipping from EU supplier to EU countries?

[jxm28788]

As per the subject, as a Uk based reseller how would I handle VAT and customs for dropshipping goods from an EU supplier to EU customers?

I assume that as a VAT registered UK seller I would not charge VAT to the EU VAT registered customers, as normal?

Could I also assume that there would be no customs duties or charges as all deliveries are within the EU?

Is there anything else I need to consider?

 

[zomex]

I could be wrong but I'm pretty sure as you're taking income from a UK company you have to collect VAT on those sales.

I have to do this with digital goods using the MOSS system:

VAT on digital services/MOSS: What services are covered? - Your Europe

Learn more about the MOSS scheme and if you need to register in an EU country you sell to. There are 2 schemes: Union & non-Union scheme.

europa.eu

Until (don't quote me) around 2010ish I didn't have to.

 

[Customs Geek]

As per the subject, as a Uk based reseller how would I handle VAT and customs for dropshipping goods from an EU supplier to EU customers?

You need to think of this as two transactions within the EU.
Firstly the sale from your supplier to you and the second from you to your customer.
This is the case although you don’t physically receive the goods.

I assume that as a VAT registered UK seller I would not charge VAT to the EU VAT registered customers, as normal?

Your sales within the EU are outside the scope of UK VAT. So you are correct that no uk vat should be charged on these sales.

Could I also assume that there would be no customs duties or charges as all deliveries are within the EU?

Is there anything else I need to consider?

There are no customs formalities between EU countries so no customs duties apply .

There are however likely to be EU VAT applicable . Whether you will be responsible will depend upon how your customer places their order ie through a platform or directly with you.
As a non EU business I’m pre sure there is a zero threshold for registration. There is a simplified method known as OSS that removes the need for registration in every EU country where you trade.
vat-one-stop-shop.ec.europa.eu/index_en

I would suggest getting some professional advice

 

[Customs Geek]

I could be wrong but I'm pretty sure as you're taking income from a UK company you have to collect VAT on those sales.

I have to do this with digital goods using the MOSS system:

The rules for services are different to those for goods.

Until (don't quote me) around 2010ish I didn't have to.

There have been many changes to VAT schemes over the years.
Brexit however completely separated the UK and EU VAT schemes. UK companies no longer have the same thresholds , benefits and access to EU schemes that they did when we were within the EU.

 

[Customs Geek]

There are however likely to be EU VAT applicable . Whether you will be responsible will depend upon how your customer places their order ie through a platform or directly with you.

Sorry just realised you said B2B not B2C . In which case there will almost certainly be a requirement to register for VAT in the EU.

I would suggest getting some professional advice