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The EU Principal VAT Directive must be consulted to ascertain the correct VAT treatment of goods sold from the UK to another EU country and then delivered from there to a third country
My client is based in the UK and she sells shoes through a website. All sales are to the public and the client has just registered for Hungarian VAT under the distance selling rules.
Some of the goods are delivered directly to customers in Hungary from the UK but she also rents a warehouse in Hungary and holds some stock there to meet urgent orders. Our client charges Hungarian VAT on all these sales.
To complicate things quite a lot of orders come from customers in Hungary but the goods are delivered straight from the UK to the customers’ friends and family who live in Austria.
My query concerns the entries we make on our UK VAT returns for the different sales that are made because we would have originally claimed input tax on the UK VAT return. And what rate of VAT do we charge on the...
