VAT in the EU

[tracer.smart]

VAT rates in some of the EU are better than others but still unwanted charges when you're spending your hard earned cash on consumables.

So whats the best legal way of buying in the EU and not swelling government coffers?

[Eric Mc]

If you are a VAT registered trader, then you inform your European supplier of your UK VAT Number. The supplier will then be able to Zero Rate his sale of goods/services to you.

If you are a non VAT registered trader in the UK, or an ordinary member of the public, you have to suffer the VAT charged by the supplier - whatever the VAT rate in that supplier's country happens to be.

[tracer.smart]

Eric Mc said:

If you are a VAT registered trader, then you inform your European supplier of your UK VAT Number. The supplier will then be able to Zero Rate his sale of goods/services to you.

If you are a non VAT registered trader in the UK, or an ordinary member of the public, you have to suffer the VAT charged by the supplier - whatever the VAT rate in that supplier's country happens to be.

Thanks Eric MC - do you know if the supplier require the UK VAT number to be registered to the shippment address?

[Eric Mc]

I wouldn't think so. As long as the individual/business buying the goods is properly VAT registered (and the goods are for business use) then supplying the VAT number should be suffcient. The supplier can check the validity of the number if they so wish.

[stumartin]

Eric Mc said:

If you are a VAT registered trader, then you inform your European supplier of your UK VAT Number. The supplier will then be able to Zero Rate his sale of goods/services to you.

Eric - UK acquisition VAT / reverse charge? Potential irrecoverable VAT if it's not a fully taxable UK business / purchases not used for business purposes?

[Eric Mc]

Yes.

It can get very complicated.

Although the idea is to ensure that a VAT registered trader buying goods from a supplier in another EU country is more or less in the same position from a VAT point of view as he would be if he was buying from a domestic supplier.