VAT Triangulation Post Brexit ?

Trying to determine VAT implications of EU VAT Triangulation transactions post brexit.

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I have a UK VAT registered client who is sourcing goods from his supplier in one EU country and they are shipping directly to his business customer in another EU country.

The goods never enter the UK, and we understand that the place of supply is the destination country and this means that our client will now have to register for VAT in the destination country to account for the VAT.

Does this scenario change at all if the supplier and customer are in the same EU country, so goods never enter the UK, they are sourced from German supplier and shipped to customer also in Germany?

Thank you.

 

 

Replies (2)

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VAT
By Jason Croke
24th Feb 2021 20:46

With triangulation gone, the UK business either takes ownership of the goods at the EU supplier location of the EU customer location.

So if the supply and sale is in same EU member state (ie, Germany), the UK business needs a German VAT registration and charges German VAT to the German customer.

Basics of VAT, place of supply for goods is where they are time of sale, slow-mo the transaction and German supplier sells to UK business, German supplier ships goods (now owned by UK entity) from Germany to say, Spanish customer, so UK entity required to register for German VAT and then if Spain customer is a business then reverse charge, if consumer, charge German VAT. None of this is anything to do with a GB VAT return.

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Replying to Jason Croke:
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By helenjane
25th Feb 2021 15:16

Thank you for taking the time to confirm this, much appreciated.

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