UK company purchased from Italy shipped to Ireland

UK company purchased from supplier in Italy but sent directly to customer in Southern Ireland

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I have a customer that to save time purchased goods directly from Italian supplier who despatched the goods directly to the customer in Southern Ireland. The UK company have been charged Italian vat

There is according to the supplier no paperwork for despatch as it was sent to another EU country so there is no importer of record as the Italian company had despatched to an EU country.

How should the UK company treat this sale in their records does this seem correct 

Hoping there is someone that can answer this as I am so confused.  With thanks

 

 

 

 

Replies (6)

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RLI
By lionofludesch
12th Jul 2021 11:35

Is the UK company VAT registered ?

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By jo.guest
12th Jul 2021 11:47

Yes registered in the UK

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By VATs-enough
12th Jul 2021 17:33

Sounds like classic Triangulation

Problem is, post Brexit UK entities can't rely on their UK VAT number to be part of the Triangulation club anymore.

Need to check Incoterms from supplier to your client, and your client to customer. Your client may need to register in Italy, or Ireland (possibly both if the stars align in bad way...)

Of course, if the Italian supplier has treated this as an OSS transaction (post 1.7.21) then might be a nightmare to undo ?!

Mr Croke can offer some comforting words of wisdom I am sure.

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By LW64
15th Jul 2021 11:13

Yes sadly loss of triangulation - another brexit bonus.
I have had similar.
Depending on where the change of ownership happened &/or incoterms it sounds like registration in either Italy or Ireland is necessary.
They will then need to re-issue their own invoice with the correct vat.

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By jo.guest
15th Jul 2021 11:21

Thank you for your answers they are really helpful

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