The message concerning VAT on electronic products appears to be
confusing.
My understanding is that for all products (not services) VAT
requirements are based upon the location of the customer and not the UK
supplier and this has always been the case in the 'Single Market'. If
the customer is in the UK VAT is due. If the customer is outside the EU,
VAT is not due. If the customer is within the EU but outside the UK, EU
VAT rules apply regarding distance sales and acquisitions. Books and
journals in the UK are zero rated but electronic goods are subject to
VAT. Acquisitions occur within the EU where the customer is registered
for VAT. No VAT need be charged for acquisitions from UK suppliers
provided that a valid VAT number is provided. There are country by
country thresholds for distance sales, and provided the UK supplier does
not exceed these thresholds VAT need not be charged. If the thresholds
are exceeded, then registration in that country is required and VAT
should be accounted for in that country. UK VAT should not be charged on
sales outside the UK.
Would someone more expert than I please correct me if I am wrong?
E.P. Goldfinch
Nuclear Technology Publishing
P.O. Box No 7, Ashford, Kent TN23 1YW, England
Telephone: +44 (0) 1233 641683
Fax: +44 (0) 1233 610021
E-mail: [log in to unmask]
Web site: http://www.ntp.org.uk
|