I am a non VAT registered sole trader that runs an e-commerce business in the UK. Some of our suppliers are based in the EU. Due to the recent events and changes regarding the VAT I have now become very confused and need some help getting my head around the new requirements.
Our business model goes like this:
- Customer in the UK places in order on our UK based online store.
- We place an order with an EU supplier
- The EU supplier ships directly to the customer in the UK.
Do we have to pay the VAT when placing orders with EU suppliers, if so is VAT reclaimable? I have noticed some VAT-registered EU suppliers charge VAT on our purchases (Germany) but some don’t (France, Sweden). What option do I choose in the VAT settings for such suppliers?
Do I have to register for VAT now at all?
Thank you, dear sirs, and madams.