Delivery from EU to UK and then UK to EU

How is the VAT treated? Delivery from supplier in Italy to UK, them been delivered to Spain

Didn't find your answer?

We are processing an order that will be purchased from  Italy - (Furniture)

Our customer is a business in the UK but the delivery will be to Spain

I understand the VAT in Itay will need to be paid?

Can we then reclaim this?

What vat code do we use on Xero?

Replies (5)

Please login or register to join the discussion.

avatar
By Youareatit
23rd Jan 2021 23:10

Twice you say the delivery will be into Uk, then exported back out to EU. Why? Muddled.

In Spain, B2C?

Try here https://www.accountingweb.co.uk/content/brace-for-brexit

Why the 2020 group tag?

Thanks (0)
avatar
By wenglish60
23rd Jan 2021 23:18

Hi,

It is a wholesale business in Uk, importing goods from Italy.

The customer lives in Spain so goods need to be delivered to Spain.

Regards

Thanks (0)
avatar
By paul.benny
24th Jan 2021 16:11

You're adding cost and complexity by shipping to and from UK. Customs declarations and VAT and administrative costs in both directions. Italy-> Spain is within the single market, so *relatively* straightforward.

Thanks (0)
Replying to paul.benny:
Routemaster image
By tom123
24th Jan 2021 22:26

But I am assuming it is not one transaction - ie buy a pallet load and sell one unit?

There will be a customs code to use for temporary import relief, I expect, but this needs to be dealt with from the beginning of the shipment rather than after the fact.

Thanks (0)
VAT
By Jason Croke
25th Jan 2021 08:13

I'm all for brevity but VAT questions don't work well with little detail.

Can you confirm, goods are physically moving from Italy to UK, then to Spain. Is the Spanish customer a business or a person? Also, can you confirm the value?

The other questions you need to answer are what are the origins of the goods (where are the goods manufactured, are they made in Italy or are you just buying from an Italian business?)

Do the goods have to come to UK first (as Tom123 has posted are you buying a palette of goods which you then sell one by one or is this Italian order for a single order and does the order have to come to UK or can it go from Italy directly to Spanish customer?

If the question is your title "delivery from Italy to UK then UK to Spain", then you will incur import VAT when goods enter the UK from Italy (Italy will zero rate their invoice to UK), plus potentially incur import duty if the goods are not made in Italy (rules of origin).

The movement from UK to Spain will be zero rated export from UK to Spain, the Spanish customer will incur import VAT, plus potential import duty (Rules of Origin).

Just initial thoughts, need more details so if you can answer the questions raised by myself and others please.

Thanks (0)