Dear all,
I am really very confuse with the Removal of the Threshold for Non-UK Established Businesses, from 1st December 2012. I have asked HMRC by calling through their helpline but i always get different answers, can anybody help me.
Question -
1. If a Non-UK Established Businesses is based in Spain and registered for VAT in Spain than do they need to register for UK VAT if they supply goods in the UK
2 And what is the Non-UK Established Businesses is NOT registered for Spanish VAT.
One party from HMRC is saying that they do not need to register for VAT until they reach the threshold of £70,000 and 2nd party is saying no they have to register and NO more threshold available.
????????????? confused
Replies (4)
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It depends
Hi there
The position does appear to be confusing, but VAT (with no registration threshold) will only apply to supplies made in the UK. So if, for example, the Spanish VAT registered business sends goods to to the UK, to a VAT registered buyer, the place of supply is Spain and the customer declares the VAT as an acquisition. However if the Spanish business brings goods here to sell, for example in a warehouse, to supply to various customers, or at a fair or market, they have to register and charge UK VAT.
I would still think that a call off warehouse for a particular customer to draw stock from is still OK, in other words the customer can declare an acquisition as the goods are removed, with no UK registration need for the supplier. But I would welcome any comments on this as I am not 100% certain.
Supplies of goods from Spain to UK non registered customers are presumably still Spanish sales until the UK distance selling threshold is breached (which I believe is £70,000).
Here is the HMRC brief
http://www.hmrc.gov.uk/briefs/vat/brief3112.htm
Hope this helps
In order to answer your questions you need to clarify 'If a Non-UK Established Businesses is based in Spain and registered for VAT in Spain than do they need to register for UK VAT if they supply goods in the UK'
By this do you mean the goods are brought into the UK before being allocated to a customer order or have they been allocated to a customer order in Spain and are just being shipped to the UK company against a UK VAT registration number.