Does I'm required to register at UK VAT? (selling items from outside EU, UK to EU, UK citizens)

[Greenberry]

Hi

In other topic I've tried to get information which company will be better for me, but I'm almost decided on UK business, as a pair to my US LLC.

I would like to sell items to EU citizens, items will be going from outside EU, customers will pay VAT by themselves. I'm not planning to purchase anything inside EU.

Does I'm required to register at UK VAT then?

Can somebody can also recommend me agent who'll register business for me, as well, will have address rental option for it?

 

[Tax Cow]

As I understand,
...you sell and ship someone else's physical goods from outside the EU
...to EU non-VAT registered individuals

https://europa.eu/youreurope/busine...order-vat/index_en.htm#outsidetheeubuygoods-1
...Your EU customers pay VAT at the point of import, that's correct.
...And for as long as your VAT taxable turnover in the UK is 85K or less, you don't need to register.

https://www.gov.uk/vat-registration

 

[Greenberry]

xzars said:
As I understand,
...you sell and ship someone else's physical goods from outside the EU
...to EU non-VAT registered individuals

https://europa.eu/youreurope/busine...order-vat/index_en.htm#outsidetheeubuygoods-1
...Your EU customers pay VAT at the point of import, that's correct.
...And for as long as your VAT taxable turnover in the UK is 85K or less, you don't need to register.

https://www.gov.uk/vat-registration
Click to expand...

Thank you, what if customers with EU VAT will also order at me, and would like deduct tax added at customs? Then it's internal country of destination procedure, as there's also not any of our data at this point? (customs have invoice from our partner, not ours)

 

[fshore]

You also don't need to register if sales are above 85k gbp as it's out of scope of vat.

 

[Gediminas]

If supplier of goods is US company formally you would not be required to register for VAT. Customers would pay VAT depending on the value of received shipment.

UK tax authorities might negotiate that US company has fixed establishment for VAT purposes in the UK (if in practice all functions are performed from UK territory) and try to assess income of US company in the UK with VAT and CIT.

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[fshore]

Gediminas said:
If supplier of goods is US company formally you would not be required to register for VAT. Customers would pay VAT depending on the value of received shipment.

UK tax authorities might negotiate that US company has fixed establishment for VAT purposes in the UK (if in practice all functions are performed from UK territory) and try to assess income of US company in the UK with VAT and CIT.
Click to expand...

No, vat for goods depend on where the goods is shipped from.

 

[Gediminas]

fshore said:
No, vat for goods depend on where the goods is shipped from.
Click to expand...

You refer to the basic rule applied for sales of goods when delivery of goods being within the EU. In the case of import, VAT for goods depends on the fact whether the importer of record is in the EU or no. If the import of goods and further sales are done by the EU, company import is subject to VAT in Europe. The Fixed establishment is a definition determined in the VAT directive. You can check it for more information.

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[fshore]

Gediminas said:
You refer to the basic rule applied for sales of goods when delivery of goods being within the EU. In the case of import, VAT for goods depends on the fact whether the importer of record is in the EU or no. If the import of goods and further sales are done by the EU, company import is subject to VAT in Europe. The Fixed establishment is a definition determined in the VAT directive. You can check it for more information.
Click to expand...

As op said, he'll be sending goods to eu customers from outside the eu and the eu customers will pay vat and Import the goods. That means the customer is the Importer of record.

 

[Greenberry]

Thank you for all your answers! Now I only need to choose registration company and good accountant.

 

[Kabapy]

Any one knows how much a uk accountant would cost for a small dropshipping business?