VAT treatment

[Red Wood]

Can I confirm the below...

Case 1
Customer in Ireland
Delivery in France
*0 Rated I'm assuming

Case 2
Customer in UK
Delivery in Spain
*Vat charged at the standard rate

Case 3
Customer Germany
Delivery UK
*Vat charged at the standard rate

 

[STDFR33]

Maybe.

Maybe not.

 

[Red Wood]

Can you expand please.

All things being equal, customers are vat reg'd businesses within their respective countries, pre end of transition period.

 

[lesvatadvice]

Where a UK business sells to registered businesses in other EU MSs, sales are zero-rated.
You need evidence of removal & delivery; customer's VAT number to be shown on your invoice; and submit EC Sales Lists.

 

[Red Wood]

I am aware of the above, my question is how is VAT treated if we are supplying a UK VAT reg'd business but goods are delivered in another EU country.

 

[Spur Support Services]

If you are invoicing the goods from a UK VAT registered business, and your customer is VAT registered elsewhere in the EU, then the invoice will be raised on a "reverse charge basis".

This means that you apply zero VAT, but the customer accounts for their own country's VAT on their VAT return (sort of.. as if they had sold it to themselves).

An invoice will need to be raised, stating that the reverse charge basis has been applied,
- you should ensure the the sale is reported as an EU sale on your VAT return,
- your customer will need your VAT number prefixed with GB,
- you will need your customer's VAT number, prefixed with their country code and
- you need to submit an EU Sales Report to HMRC even if these goods never actually passed through the UK (certain entities can apply to submit on a simplified basis).

Simples.......

 

[Red Wood]

Yes thanks, I am up to date with that as we do it very regularly, my question is if the customer is vat reg'd in the UK but we deliver goods to another EU country on their behalf, marked for their attention for installation on a site by them.

 

[Scalloway]

From here

https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad

"If you’re sending goods to someone who is VAT-registered in a destination EU country, you can zero rate the supply for VAT purposes"

My reading of that is the customer is registered in the UK so you must charge 20% VAT.

 

[STDFR33]

From here

https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad

"If you’re sending goods to someone who is VAT-registered in a destination EU country, you can zero rate the supply for VAT purposes"

My reading of that is the customer is registered in the UK so you must charge 20% VAT.

Yep.

Then it’s up to them whether it’s distance selling or a despatch.

 

[AbsoluteVAT]

If the UK customer is also VAT registered in the member state of delivery, it may well be possible to make an intra-community dispatch to them.

If that customer is then supplying the goods with installation to another customer, they will need to consider the VAT treatment of that supply.