When I should register for VAT in UK

[Edwil]

Hello friends

I have a LTD company and I want start to sell goods to private customers from website in Denmark. Goods arent digital products.

I understand is required for register VAT in UK when my turnover is around 83000GBP
But when the sales of goods are sell outside UK; 1) What is turnover required for register VAT?

2) Do you know what bank of UK can offer low fees per transaction for credit and debit payments?

Thank you very much

 

[Scalloway]

If you are selling goods to individuals in other EU countries you may need to register for VAT in those countries.

http://www.vatlive.com/eu-vat-rules/distance-selling/distance-selling-eu-vat-thresholds/

 

[Edwil]

And If my company dont exceeds the limit of each country; When I should register for VAT in UK?

Greetings

 

[Scalloway]

If you are selling to UK and EU customers all your sales will count to the registration limit. When you are registered in the UK you will need to charge VAT to your EU customers.

 

[Edwil]

I dont want sell goods in UK because for these goods there are low prices.
Example: I sell from Ebay 20000GBP to end customers of Denmark and 70000GBP in Netherlands. Total turnover will be 90000GBP.

Turnover for each country dont exceed his limits but total mixed turnover exceeds 83000GBP and these sales arent in UK

What is the turnover required for register VAT in UK for sales to others eu countries?

 

[Newchodge]

Is your company UK registered?

 

[Edwil]

Yes, is LTD

 

[rik_rs]

I found this enlightening, more than thousands words:
https://www.gov.uk/government/uploa.../415931/VAT_MOSS_Flow_chart_FSB_edit_V1_0.pdf

Basically it says that when you sell 1 pound to a non-business entity (B2C) overseas you need VAT registration because the threasold doesn't apply (I've found this clearly stated in many HMRC documents)....
... unless you are selling using Ebay, Amazon, and so on.

So, if you are a UK business (but I think every other EU countries since the rule is EU not UK) you can't sell B2C from your website without VAT.

No problem if you sell to VAT entities (B2B): in such case the VAT registration is needed only if you go over the threshold.

So, to avoid VAT the only way is:
1) Selling only B2B
2) Selling B2C through Ebay and similar marketplaces
3) Never going over the threshold in both cases.

or waiting for brexit hoping this stupid EU B2C rules will be removed.
As far as I know, selling in non EU is easier than selling in the EU.

See:
https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop

and this about place of supply could be important.
https://www.gov.uk/government/publi...s/vat-notice-741a-place-of-supply-of-services
(Basically B2B the place of supply is the customer country, while B2P is the country of the supplier)

 

[Edwil]

Hello rik_rs

thank you very much for info about VATMOSS but I think that these requisites are for sales of digital products, I want sell physical products

UK require VAT registration for b2c sales of physical products outside UK ?

best regards

 

[Scalloway]

If the place of supply is the UK, the supply counts towards customer’s UK registration threshold so if the place of supply is outwith the UK it doesn't count.

 

[Edwil]

OK, thank you very much. And if i sell 100000eur without VAT in Netherlands without VAT registration in Netherlands, Could UK put me penalty or contact con Netherlands for pay these VAT quotes?

 

[Richard Edwards]

If your income is over 70,000 in the UK (or there abouts) I'm sure its a legal requirement to be VAT registered.