VAT Registration Required?

The business I have recently joined mainly exports from the EC and is not VAT registered.

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Can anybody advise me if this business should be UK VAT registered:

  • 99% of Company A sales are from UK to AUS. The supplier of these goods ships direct to AUS and does not charge VAT on it's invoice to Company A. 
  • Company A is not UK VAT registered and as far as I know has not obtained exemption from registration.
  • Company A also has a small number of sales to the EU to individuals/non-VAT registered persons (<£1K PA). 
  • Company A has a very small number of sales to the EU to VAT registered businesses. These appear to be being treated as if Triangulation exists (they ship direct from another UK supplier to EU customer) and the supplier does not charge VAT to Company A. 
  • Company A is registered in France but is not VAT registered in France or anywhere else in Europe. 

I think the sales to the EU individuals would normally fall under the Distance Selling rules. But as Company A is not VAT registered it is probably correct it does not charge UK VAT. 

I'm uncertain if the supplier should be zero rating the invoices for supplies to Company A's AUS customers and likewise uncertain if Triangulation can apply if one party is not VAT registered.

Any help would be appreciated as it feels like a can of worms. 

Thanks. 

 

 

 

Replies (1)

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chips_at_mattersey
By Les Howard
15th May 2018 19:25

On the basis of the sales to Australia, I would register for VAT in the UK, and back date it if possible, to pick up the input tax.
Zero rating of exports depends on adequate commercial export evidence. Do have a look at this too.
Then sort out the other details.

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