Do I need to register for VAT?

VatHelpMeUser

Hi there, VAT question that I cannot seem to find the answer for online..

I run an eBay store and sell toys to UK customers. My turnover from the last 12 months is £75,388.75.

Over the last month I have started selling to EU states (France, Germany etc). The EU customers are not businesses and are therefore not VAT registered.

I have read somewhere that I must register for VAT if I sell to the EU, and pass the country's own distance selling thresholds? And that I have to register for VAT in the UK, even if my UK sales are under the threshold.

Do I start to charge VAT on my EU sales only and submit a VAT return based on that, or would I have to charge VAT across both my UK and EU sales, even if the annual sales are under the threshold?

Because if that is the case I will stop selling to the EU completely lol

Furthermore, do these EU sales count towards the UK selling threshold? Or are they seperate? So for example if I have £70,000 sales to UK and £30,000 to EU, would it count as £100,000 sales in the eyes of UK VAT?

What country do I register for VAT in?? AAAAHHHHHHHH!!

Any advise would be fantastic

Love you All!

Cheers

unforeseen

Talk to your accountant. That's what you pay him for.

VatHelpMeUser

I do not have an accountant, I am a 1 man show!

BoGoF

Think it's time you got one.

00ec25

to answer your question
your taxable turnover for VAT registration purposes is the total of UK ONLY sales

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

if you become UK VAT registered
you are "distance selling" and in your context that means your Business is sending physical goods to a Consumer (not a VAT registered business) in another EC country aka "B2C" sales

In incredibly simplified terms …

you are required to charge UK VAT on your sales to other EC countries until such time as the value of sales to an individual EC country exceeds the threshold at which you have to register for VAT in that specific country, at which point you charge their vat rate. (potentially therefore you could end up having to register in all 28 EC member states)

the above rules change on 1 Jan 2021 when it will be very different

the threshold can be "low" in some countries Euro 35,000 (approx. £31,500) so don't ignore it if you do become UK VAT registered.
https://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf

VatHelpMeUser

So, for now I would not have to register for VAT in the UK as my UK sales are below the threshold.

So as I would not be registered for UK VAT, I would not have to charge VAT on EC Sales until I go over one of the EC member state's threshold (at which point I would have to register in that state only) - and as you say, potentially registering in multiple countries.

Or, do I only have to consider the EC member states threshold when I am UK VAT registered?

Also Thank You very much for your reply, I would buy you a beer, if I could.

00ec25

VatHelpMeUser wrote: »

So, for now I would not have to register for VAT in the UK as my UK sales are below the threshold. correct: uk sales <£85,000 in continuously rolling 12 month period

So as I would not be registered for UK VAT, I would not have to charge VAT on EC Sales correct until I go over one of the EC member state's threshold (at which point I would have to register in that state only) - and as you say, potentially registering in multiple countries. No, if you remain non VAT registered in the UK, you never have to charge VAT in an EC country even if you breach one of their thresholds

Or, do I only have to consider the EC member states threshold when I am UK VAT registered? correct

Also Thank You very much for your reply, I would buy you a beer, if I could.

read all the pages on the .Gov website, especially https://www.gov.uk/vat-registration/registering-vat-other-eu-countries

NOTE CAREFULLY - I have assumed that you are selling physical goods
if that is incorrect and you are in fact selling "digital services" (eg "downloads") the position is radically different and we will need to start again with your answers

Jack_Merell

I had the same problem here in Spain. That's what my accountant told me:
If you are selling physical goods in your own country, you have to charge VAT always.
If you are selling in other EU countries, there is a threshold. For example, in France is 30k € approx. If you pass that threshold, then you have to pay VAT in that country.
You don't need to register for VAT in each country, just apply for the intracommunitary VAT. Very easy to do

00ec25

Jack_Merell wrote: »

I had the same problem here in Spain. That's what my accountant told me:
If you are selling physical goods in your own country, you have to charge VAT always. no don't, you may not need to register
If you are selling in other EU countries, there is a threshold. For example, in France is 30k € approx. If you pass that threshold, then you have to pay VAT in that country. thresholds are listed in my link above
You don't need to register for VAT in each country, just apply for the intracommunitary VAT. you don't "apply", you follow the rules depending on what you sell: goods or services, or digital (VAT MOSS). Very easy to do

no sorry, your explanation is so lacking in details it is misleading

can't be bothered to fill in the blanks, but anyone reading your comment should understand that it does not cover the various scenarios correctly