VAT registered in MS but below distance selling threshold

[Ieko]

My company (UK based ) is registered for VAT in Netherlands. I believe VAT registration was due to our events/seminars held in Netherlands. However distance sales have never reached 100k and UK VAT is still applied to B2C goods to this country.

Is it possible that non-resident business can be registered for VAT in a Member State but still avoid charging local VAT on distance sale goods ? Are different types of registration possible ? Is it something specific to Netherlands or accross EC ?

[les35]

The distance selling threshold applies to sales of goods. Your activities are the supply of services.
There is no VAT registration threshold for a business located outside of the MS in which supplies are made.
Rules relating to events & seminars can be complex; B2B and B2C supplies have different outcomes; are the events 'open' to all-comers? Is the supplier a non-profit.
I suggest you contact a VAT specialist.

[Ieko]

I see how confusingly I expressed myself. We have registered because of events held in the country, but we also sell goods to Netherlands. When I read UK law, I was under impression that once you are registered for VAT in a Member State (no matter the reason for registration), you must start charging their VAT rate on your distance sales even if the threshold was not reached.

[absolutevat]

You are registered in NL due to holding events there, this will not affect the place of supply rules for goods, and as per the EU directive the POS will remain the UK until the threshold of €100,000 is breached. Thus UK VAT until this time.

Alternatively, you can opt to make the place of supply NL prior to breaching the threshold.