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• UK established
company selling
accessories
• Successful
business in UK
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• Decides to
focus on Italian
market
• Sells on
Amazon Italy &
eBay Italy
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Me
(UK)
My customer
(UK)
£34.99
Goods inc. delivery
Delivery (UK to UK)
Gross: Customer pays £34.99 for the goods, including shipping.
VAT: UK VAT @ 20% = £34.99 / 120 x 20 = £5.83
Net: £34.99 (gross) - £5.83 (VAT) = £29.16
Recognise this scenario?
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Me(UK)
£34.99
Goods inc. delivery
Delivery (UK to Italy)
What VAT should I charge in this scenario?
A. UK VAT B. No VAT
C. Italian VAT D. It depends
How about this one?
My customer(Italy)
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Me
(UK)
£34.99
Goods inc. delivery
What VAT should I charge?
A. UK VAT B. No VAT
C. Italian VAT D. It depends
Delivery (Italy)
And the correct answer is…
My customer(Italy)
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Which country (EU Member State) I am shipping to.
The so-called “distance selling threshold” set by that country.
It depends on what exactly?
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1. EUR 100,000 (e.g. France, Germany); or
2. EUR 35,000 (e.g. Ireland, Italy, Spain); or
3. The (approximate) local currency equivalent of either in countries
that have not adopted the Euro (e.g. Denmark, Sweden).
Distance Selling Thresholds
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If my net sales to private individuals in Italy exceed the Italian
distance selling threshold, I need to register for VAT in Italy (obtain an
Italian VAT number).
Once registered, I need to file Italian VAT returns in addition to UK
VAT returns.
I need to account for Italian VAT at the appropriate rate on all
shipments to private individuals in Italy going forward.
I need to pay that VAT to the Italian tax authorities.
So what does that mean for me…?
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• Who’s at fault?
• Mystery
Purchases by
Italian
authorities
• Monitoring of
online cross
border sales
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VAT paid to HMRC
but should have
been paid to Italian
authorities
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Identify
Verify
Comply
Sell everywhere
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Contact
Chris O’SheaMeridian Global Services
Direct Tel + 353 (0) 1 4000 690
UK Sales +44 (0)20 8601 4600
