Distance Selling VAT for Uk

L

loughconn

Guest
Hi All,

We are an online business based in Ireland and we are now looking to start shipping to the UK. Some of our suppliers are based in the UK and allow us to direct ship to our customers in the UK.

Should our UK supplier charge us UK vat since the product never comes to Ireland or do they still charge us 0%?

We will not break the distance selling threshold of 75k in the first year so we will not register for UK VAT
 
Hi loughconn

The UK supplier must charge UK VAT if the goods aren't being shipped out of the UK.

You may not reach the distance selling threshold for the UK in the first year, but it could be worthwhile from a VAT reclaim perspective and to avoid any difficult pricing decisions when you are obliged to register.
 
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