It doesn’t matter whether you trade in goods or services or are buying or selling, trading with other countries, even those within the EU’s supposedly ‘common VAT system’, brings a whole host of problems.
The tax could be payable by either you or the other party in either case in the UK or the country that you are dealing with. It may even be payable by you in the other country even if you have no permanent establishment there, requiring you to appoint a fiscal representative.
You need to be aware not only of the UK’s rules, but also the differences in other countries. Get it wrong and, at best, the tax bill will wipe out some or all of your profits. At worst, your goods could be held up for lengthy periods of time and your legitimate VAT refunds could take years to be paid out.
We can advise you on the VAT consequences in different jurisdictions and recommend ways to alter your contracts or supply chains to secure operations that are as tax/VAT efficient as possible.
Download our flier ‘Imports and exports‘ to find out more.