Can anyone tell me what happens if I sell to someone who isn't VAT registered in another EU country?

If you are selling items to a person who is not VAT registered in another EU country, you should get the necessary information on what you have to do. This is also known as a distance sale. It’s considered to be a supply in case you are sending your own products to another EU country. You can use the VAT from your own country or you can register for VAT in the country where you are sending your products. You also have the option to zero rate the VAT.

You should charge VAT in the usual way if you are selling items to a person who is not VAT registered. Remember to include this in your VAT return. The only difference is for supplying goods like alcohol or tobacco. In this case, the VAT rate depends on how you deliver the products. You can choose to deliver the products yourself or have the customer collect them. In case you deliver the items, you should register for VAT in that country. If the client collects the products, you can have the supply zero rated. The only exception is for the private use items.

Do I really need to register for VAT in the EU country where I am selling my products?

You can use the VAT from your own country. However, each EU country has a threshold for distance selling. In case you exceed that threshold, you need to register for VAT in the country you are delivering your products.

Thanks a lot! I have another question. How do I report the sales in an EU country where I charge VAT?

To report the EU sales in the country where you need to charge VAT, follow these simple steps:

• Write the sales value in Box 1 and 6 from the TAX return form.

• Pay the HM Revenue & Customs

• You need an Intrastat Supplementary Declaration if your sales exceed the yearly threshold.