Commentary

V2.171 Registration for persons making distance sales

Part V2 Registration – deregistration

V2.171 Registration for persons making distance sales

Registration—distance sales

V2.171 Registration for persons making distance sales

VATA 1994, Sch 2 deals with the registration of persons making 'distance sales' (see V3.173) to the UK, ie supplies of specified descriptions which involve the removal of goods to the UK from another EU member state. (The expression 'distance sales' is not used in the legislation, but has been adopted by HMRC1 and will be used in this Division, except where the context otherwise requires.)

Distance sales fall into two categories: 'relevant supplies', and supplies of goods which are subject to a duty of excise (referred to in this work as 'dutiable goods').

Relevant supplies under distance sales

A supply is a 'relevant supply' if it meets the following conditions2:

  1.  

    •     the goods are removed to the UK, and the supplier is responsible for their delivery. HMRC takes the view that the introduction of a third party for the purposes of delivering the goods does not prevent those goods from being treated as distance sales for VAT purposes. This view has been upheld by the EU VAT Committee (although their view is not binding on member states)

  2.  

    •     the supply does not involve the installation or assembly of the goods in the UK (see V3.173 and V3.388AA)

  3.  

    •     as a result, the goods are acquired in the UK from another member state by a person who is not a taxable person

  4.  

    •     the supply is made in the course or

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