A. Yes. If a business makes any supplies of goods to a VAT registered customer in another EC member state then it must show the customer’s EC VAT registration number on the invoice, record the sale in Box 8 of the VAT return and also include it on an EC sales list. The logic behind this is that if the supply is liable to VAT in the customer’s member state then the customer may be required to account for acquisition tax.
If a business makes supplies to unregistered business customers or private individuals in other EC member states then it is not required to include these supplies in Box 8 of the VAT return or on an EC sales list. Instead, VAT should be charged on these at the normal UK rate. However, a business may become liable to register for VAT in the EC member state to which the goods are supplied if the distance selling threshold is exceeded. VAT would then need to be charged at the appropriate rate in that member state. You can find more information on distance selling in VAT Notice 725: The Single Market.
If you have a VAT query why not contact the VAT Advice Line on 0844 892 2470 to discuss the implications. Our team of experts have a wealth of experience and can also provide a written consultancy service at £180 per hour plus VAT.
Book your place at our upcoming Seminars:
