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VAT distance selling thresholds

Possibly a silling question but wanted to confirm

Hi all,

I have a question regarding the distance selling thresholds; say for example a uk business exports goods to the UK and Germany, and exceeds the distance selling threshold for Germany, it then needs to charge german VAT and pay this to the German HMRC equivalent, pressumable that means that no UK VAT is paid on these items. So in the companies VAT return, these german sales effectively become zero rated? Is my thinking correct

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21st Apr 2017 13:08

Yes, Germany VAT payable, not UK VAT.

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By RedFive
21st Apr 2017 13:10

Almost right.

You need to set up a new tax code (in whatever bookkeeping Software you use) for German VAT which will exclude it altogether from your UK VAT return and allow you to report and submit your German one.

Good luck - I run German and France VAT returns - much tighter timescales than UK for submitting and paying!

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By mg200
21st Apr 2017 16:23

Quote:

Hi all,

say for example a uk business exports goods to the UK and Germany,

Did you mean that ...the UK business exports goods to UK? Where are the goods coming from?

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