I have a UK based online client, VAT regd. They have been approached by a US based online company who wish to take orders (and payment) of certain products and want us the distribute the EU orders. They would pay the client monthly for the goods and distribution.
If I state this as US sale to the USl company, there would be no VAT but there would be rules regarding place of distribution as this could be used to avoid VAT on non VAT regd. companies in the EU. I have read throught the HMRC site but am struggling to find the right information.
This would still apply if orders were placed with and paid to an American website. It is the movement of the goods that counts. Hence, deliveries from the UK to a private individual in another EU country would be subject to UK VAT.
This would apply even if the sales were technically made by the US company. If so, the US company would be required to obtain a UK VAT registration as a NETP (Non-Established Taxable Person).
Hi folks Just to add - the VAT rules state just must be able to prove where the goods where shipped to, ie if they arent going to the US but to an EU country than its the EU country and the VAT status of the customer its going to that is applicable. Also just been through a (successful) VAT inspection (isnt it good when that happens!!) when the VAT inspector made this clear to my client, who was just about to start doing sales to Spain. Dont forget to verify the VAT number.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
