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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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.
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.
Have a look at this - https://www.inspireaccountants.co.uk/inspire-blog/new-vat-rules-after-br...