Buying goods from other EU vendors

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Buying goods from other EU vendors
  • Background
  • What are acquisitions?
  • Goods liable to excise duty
  • European Research Infrastructure Consortium (‘ERIC’)
  • Acquisition tax
  • How do businesses pay the acquisition tax due?
  • UK branches of EU businesses
  • Accounting for acquisition tax if the goods do not enter the UK (fallback position)

The EU has introduced a number of rules and regulations that are detailed in a number of pieces of EU legislation. However, the main rules are provided for in the Principal EC VAT Directive 2006/112/EC . EU member states are required to enact the EU Directives into local country legislation. Therefore there is a defined set of rules regarding the VAT treatment of supplies of goods within the EU that must be followed by the EU member states in order to ensure consistency in the VAT treatment of intra-EU supplies of goods. It should be noted that as the EU Directives need to be enacted in local legislation, some EU member states have interpreted the rules differently which can cause difficulties when dealing with intra-EU transactions and overseas VAT registrations. However, generally the rules regarding buying goods from other EU vendors are straightforward and the main points are outlined below.

The Value Added Tax (Place of Supply of Goods) Order 2004, SI 2004/314; 2006/112/EC , Articles 2(1)(b), 20, 40, 68, 69; VATSM3000; VATA 1994, s 13; De Voil Indirect Tax Service V2.181, V3.361 (subscription sensitive); VATPOSG1100; VAT Notice 725 

If the business is involved in supplying goods to customers in other EU member states or moving its own goods to another EU member state then please see the Supplies of goods within the EU and EU ― specific transactions guidance notes for more information.

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