VAT on sales to US co that sells into the UK

Hello. We are a UK limited company and have recently started selling our products (which we make from scratch in the UK) to a North American company that then sells them on within North America (ie USA and Canada) via Amazon. This company now wants to sell our products via Amazon in the UK. For this we would despatch from us to a UK Amazon fulfilment centre.

My question is about charging VAT. We don’t charge the company VAT for products we send out to them in the States, but my understanding has always been that we have to charge VAT for products we despatch to UK addresses. We’ll be sending to an Amazon centre somewhere in the UK, so do we add VAT to our invoice to the American company? They don’t have a British arm, so I would be directy invoicing them in the States.

I’ve asked our accountant but he hasn’t got back to me yet and I have a zoom with the client on Monday afternoon, so just in case I’m still waiting for the accountant to get back to me I’d appreciate it if anyone has a clear understanding of how VAT work in this sort of situation. Thanks!

I anyone’s wondering, I have the reply from our accountant and it’s as I thought: any sales from within the UK that go to a UK address have to have VAT charged. Voila!

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Hi @HeatherD

Thank you for coming back and updating the thread. Hopefully this will help other users in the future.

This also applies if you are exporting but sending goods to a UK depot for onward despatch overseas - in order to zero-rate exports, they have to be sent directly overseas.

Hi if you deliver your items within the UK and you are vat registered you should charge vat even if your is from USA

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