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Where Taxpayers and Advisers Meet

VAT on intermediary services

HRaccount
Posts:3
Joined:Fri Nov 03, 2017 10:26 am
VAT on intermediary services

Postby HRaccount » Fri Nov 03, 2017 10:32 am

Hello,

I feel I should know the answer to this but I am going round in circles!
I have been loaned goods from a Canadian supplier for display purposes. I agreed that once I was finished with them, I would post them to another stockist in the UK, and recharge the original supplier in Canada for the postage costs.
I am unsure whether to charge the Canadian supplier VAT? Having read the VAT guidance, I originally thought that because my customer was located outside the EU that the supply would be out side the scope, however as no goods have left the uk I’m not so sure!

Thanks

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT on intermediary services

Postby les35 » Fri Nov 03, 2017 12:00 pm

What is your supply to the Canadian company? What payment has be made to you?

HRaccount
Posts:3
Joined:Fri Nov 03, 2017 10:26 am

Re: VAT on intermediary services

Postby HRaccount » Fri Nov 03, 2017 1:31 pm

I am just passing on costs of posting goods. I have paid to transport them to another of their UK customers, and am now simply passing on the cost of postage to the Canadian company. It was to save shipping the goods back to Canada and them then having to transport them back to the Uk.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT on intermediary services

Postby les35 » Fri Nov 03, 2017 7:56 pm

You are not making a supply, so you do nt charge VAT. You are passing on a cost to the other party.

HRaccount
Posts:3
Joined:Fri Nov 03, 2017 10:26 am

Re: VAT on intermediary services

Postby HRaccount » Sat Nov 04, 2017 2:05 pm

THank you for your advice


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