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Where Taxpayers and Advisers Meet

VAT sole trader reselling to EU

CJ77
Posts: 1
Joined: Fri Oct 19, 2018 11:12 am

VAT sole trader reselling to EU

Postby CJ77 » Fri Oct 19, 2018 11:22 am

Hi everyone!
I have recently become a UK sole trader and was wondering if anyone could help me a query I have:-

If I buy some products from a UK Ltd company as a sole trader( without VAT registration to date), with the sole purpose of reselling to the EU would I have to pay 20% VAT in the UK? And if so would I be able to claim it back as the products would be sent directly abroad from the producer? I think ist terminalogy is "triangulation" .

Any links or advice would be truly welcomed, I have contacted HMRC numerous times and spent time in thier webchat, but todate I am none the wiser and do not want to start my business until I know where I stand with the VAT as it is more than my profit margin.

Kind regards
CJ

les35
Posts: 547
Joined: Wed Aug 06, 2008 3:09 pm

Re: VAT sole trader reselling to EU

Postby les35 » Tue Oct 23, 2018 9:25 am

I do not think you are describing triangulation - see chapter 13 in this notice: https://www.gov.uk/guidance/vat-and-the-single-market-notice-725
You can only claim back the VAT if you are registered for VAT. If your customers are private individuals, you will charge UK VAT. But you will also need to check the Distance Selling rules.


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