Do we charge VAT?

[neil_park]

I have a warehouse in the UK.
I use it to stock products that are owned by our American partner with a view to supplying the UK and Europe with faster lead times.
When the stock arrived in the UK I was charged 20% VAT which I paid and claimed back. However I never actually bought the stock.
Now a customer wants to buy the product based in the UK, the stock is sent by me in the UK, but the invoice comes from the factory in the USA. Effectively we rent out warehouse space to them as we work for them as sales agents.
Do we charge the customer VAT? we have already paid it on entry to the UK and claimed it back, so it is almost like starting afresh, but the invoice comes from the factory in the

[absolutevat]

Neil

From what you say, it sounds like all of the sales of goods are made in the name of the US co. (i.e. they are the legal owner of the goods). Accordingly, the responsibility for charging output tax will be on the US co. Of course, the status and location of the customer will dictate if UK VAT is due on the supply. If the supply is B2C it will be (subject to distance selling thresholds), however if the supply is B2B and the customers EU VAT number is obtained, no VAT will be due.

In terms of the import, I assume that you act as the importer of record and use your UK EORI number, and subsequently receive the C79?

[neil_park]

Hi, thanks for coming back to me.
Yes it was our EORI number and we received the certificate from HMCE.
Shipping to Europe yes no VAT will be charged but we are unsure about the UK.
This is a new situation for us so we want to ensure the process is correct.
Should the US invoice have VAT on when shipping to customers in the UK with the goods in the UK warehouse?
All sales are B2B

Thanks

[absolutevat]

Hi Neil

Yes, UK VAT will be due on the sales of goods made from the UK warehouse, where the goods remain within the UK. There is a reverse charge for certain suppliers (under which the customer accounts for VAT), but that only applies in very limited circumstances.

Thanks