VAT on UK supply for a EU company

Initial thoughts are yes, VAT is charged because we can only zero rate if we have proof of export, and there will be no proof of export as it wasn't exported!

The German business may technically be seen as making a supply in the UK on the basis German customer acquires the goods in the UK and then German customer installs those goods (which it now owns) on a UK site for a UK end customer.

For a non-UK based supplier with an EU VAT identification number (the German customer hopefully meets these conditions), it is possible to avoid having to register for UK VAT by applying a simplification (section 14(2) of the UK VAT Act). The effect of this simplification is that any installation or construction services between a UK VAT registered customer (the end customer in our scenario) and an EU VAT registered supplier (the Germans), can be dealt with by the UK customer (the end customer where the goods are being installed) self-accounting for the VAT that is due on the supply received from the EU supplier.

HMRC manuals here : https://www.gov.uk/hmrc-internal-manuals/vat-single-market/vatsm5140

In plain terms, the UK based end customer accounts for VAT under the reverse charge for overseas services rules. The non-UK supplier is not entitled to register for UK VAT if the only supplies it makes are of construction/installation services, this is because the simplification shifts the place of supply from the supplier and onto the customer, and the supplier in Germany are not seen as making any supplies in the UK.

However, that still leaves the Germans with your client charging UK VAT, the Germans would then reclaim this back directly from HMRC via a "VAT refund" claim similar to the EU equivalent of a 8th/13th Directive refund.

HMRC guidance here : https://www.gov.uk/guidance/vat-refunds-for-non-eu-businesses-visiting-t...