VAT help, please

VAT help, please

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Company based in Europe, no UK establishment. Buys goods in UK. Some are taken home for assembly before onward sale. But others are sold directly to UK customers. Can anyone clarify the VAT treatment of both the UK purchases and the UK sales.

Thanks

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By The VAT Doctor
26th Sep 2014 20:50

Place of supply

The goods bought in the UK and sent to another EU country either by the supplier or the buyer are zero-rated - UK supplier will need your EU VAT number and evidence of export.

But goods that come into your ownership in the UK and are sold in the UK to UK customers are subject to VAT here, both to you and by you (no threshold).

A UK VAT registration may therefore be needed. This can be via the overseas traders unit in Aberdeen or via a UK agent. If this is not convenient, then is it possible for the goods for UK customers to be sold directly by the supplier and you receive a commission?  Maybe not, as this would identify your margin....

Hope this helps.  Has anyone else any thoughts?

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