Readers' forum : Registration dilemma

Our client a UK VAT-registered company imports goods from the EU. It has recently purchased some goods from Germany. The supplier is a UK VAT-registered business but the goods have never and will never enter the UK. They are to be sent directly from Germany to our client’s customer in France.

The UK supplier has invoiced our client. As I understand it although the invoice is between two UK companies because the goods never enter the UK the supply is outside the scope of UK VAT. However the UK supplier is suggesting that unless our client can supply an EU VAT number it must charge UK VAT.

Is this correct because I need to be certain our client can reclaim this VAT? Second and more important must our client register for VAT in Germany or France?

Query 18...