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VAT on Loan of goods in EU

Hello, 

We have loaned an item to a customer for 45 days. The item was delivered to their UK office - although they then delivered it to their office in Germany. They raised a PO in Euros but we were only told to dispatch to the UK address. Should this invoice include VAT or is it classed as a service and the supply is classed as the place of business where the receiver is established?

I assume if it is an EU transaction I will then need to register for ECL?

Thanks in advance 

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29th Jan 2013 19:24

If you loaned it to the UK operation then I would just charge them with UK VAT as I assume the goods will be returned to you in the UK. Technically there is a separate supply by your customer to their German operation and that is their problem.

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