How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask ZayarH Your Own Question
Category: International Tax
Satisfied Customers: 2
Experience:  Expert
Type Your International Tax Question Here...
ZayarH is online now

If I am buying and selling goods to the uk (business to

Customer Question

If I am buying and selling goods to the uk (business to business), when am I required to register for vat in the uk?
Submitted: 26 days ago.
Category: International Tax
Expert:  ZayarH replied 26 days ago.

Hi there, the UK VAT registration threshold is £85,000 if you are a UK based business supplying vatable goods in the UK to customers in the UK.

But if you are based in another EU country and dispatching goods to UK customers who are VAT registered in the UK, then you don't need to charge VAT, and your UK customers (VAT registered businesses) will have to account for VAT in the UK. But you will need records to show that goods have left the EU country and dispatched to the UK.

Customer: replied 25 days ago.
Hi, thank you for your reply. In this situation the goods are being sold to a uk vat registered business in Northern Ireland , but the goods are being purchased from a U.K. company and being transported from the uk company directly to Northern Ireland therefore the goods are never actually leaving the wudnt member state?
Customer: replied 25 days ago.
In this case I would not have records to show proof of dispatch would I?
Expert:  ZayarH replied 25 days ago.
There won’t be dispatch as no goods crossed border. As your UK supplier will charge you vat, you might want to register for vat to claim back your vat cost. If you expect your sales to be over registration threshold £85k, you will need to register for vat will also charge vat and charge vat on your sales.
Customer: replied 25 days ago.
Is it the physical movement of the goods that is looked at so as opposed to who is issuing invoices? I am a vat registered company in Ireland who is purchasing these goods from uk but having them shipped directly to Northern Ireland so I was wondering what vat the uk company would charge on the invoice to me and what vat I should charge on the invoice to the company in Northern Ireland
Customer: replied 25 days ago.
Just to be clear I am an Irish registered company buying the goods from the uk and selling the goods to Northern Ireland but having the goods dispatched directly from uk to Northern Ireland
Expert:  ZayarH replied 25 days ago.
It is physical movement of goods. What goods are you selling? Have you sales already started ?
Customer: replied 25 days ago.
I ordered of uk company and they will be invoicing me, and delivering the goods directly to my customer in Northern Ireland..therefore is there any Irish vat issues to worry about with regards ***** ***** purchase from the uk and the invoice I issue to my customer in NI
Customer: replied 25 days ago.
are these sales considered Intra community supplies?
Expert:  ZayarH replied 25 days ago.

These sales are not considered intra community sales as no goods crossed border. If you export goods from Ireland to VAT registered customers in the UK, then it will be intra community sales as goods crossed border. I cannot advise on Irish VAT. These are considered as supplies in the UK as goods moved from supplier in the UK to the customer in the UK and UK VAT rules will apply.

Expert:  ZayarH replied 25 days ago.

As your business is based outside the UK, you can be regarded as non-established taxable person (NETP) and there is no minimum threshold for VAT registration for NETP. That means you would need to register for UK VAT as soon as the sales start. I have assumed these are vatable goods.

You will need to account for UK VAT and file UK VAT returns.