VAT / EC Sales for UK Company EU distribution

Selling to UK registered company but shipping to EU country

We sell to a large multinational company who are registered in the UK. We normally sell to their UK division and charge VAT on the invoices as normal.

Their German division now want to buy from us and after speaking to HMRC VAT helpline I am more confused now than I was to start with.

Although the goods will ultimately end up in their German site we are invoicing the UK registered company so I would assume they should be charged standard rate VAT. 

My confusion is whether we should also include the goods on our EC Sales List. I would suggest not as we are selling and invoicing to a UK company. The fact that they then send them to their German site is for them to record?

However, the person I spoke to on the VAT helpline said I should charge standard rate UK VAT and also record it on the EC Sales List. I'm just not 100% convinced that is correct?


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14th Dec 2016 21:42

HMRC are incorrect the UK company records the sale to its German division on the ECSL.

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