VAT: UK to UK sale of goods stored in the EU

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Company A (me) wants to buy goods from compnay B.  The goods are in the Netherlands.

Company A - UK entity with UK VAT registration

Comppany B - UK entity with UK and NL VAT registrations.

The goods, which came from outside the EU, are stored in the Netherlands with duty and VAT paid in the Netherlands by Compnay B upon import.   Company A is collecting the goods in NL as they were sold ex-store in the Netherlands and transporting them to the UK where they will remain. 

It is clear (i think) that NL VAT will not apply as the goods are leaving NL to goto the UK.  But should UK VAT be billed by Compnay B as both companies are based in the UK? (or should the sale be treated as a sale in NL in which case Company A will have to account for UK VAT as normal when buying from an NL entity)

Thanks for any help!

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By Portia Nina Levin
29th Jul 2017 10:10

Company B is making a supply of goods in the NL to company A, which does not involve their removal from the NL. Accordingly, company B should charge company A NL VAT.

Company A is then making a movement of own goods from the NL to the UK, which is treated as a deemed supply (by Company A to itself) in the NL, which is exempt with the right of recovery, and against which company A can recover the NL VAT charged by company B.

Company A will then charge itself UK VAT on the acquisition of goods in the UK, which it can also recover in the UK, if it is fully taxable.

Both company A and company B will need to be registered in the NL.

An alternative would be that Company B could ship the goods to company A in the UK. Company B's supply would then involve the removal of the goods from the NL, making the supply exempt with the right of recovery.

Company A would then just acquisition account for the goods in the UK, as before.

Now only company B would need to be registered in the NL.

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By shaun king
31st Jul 2017 21:17

Of course as a non resident company, company B could have appointed a tax rep, in which case company B does not need to register for Dutch VAT and the tax rep applies the Reverse Charge and then supplies the goods to company A as a supply for acquisition. In this case neither company A or B is registerable for Dutch VAT.

If you go the tortuous route then don't forget the Dutch EC Sales List and dependent on values Intrastat!!

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