Readers’ forum: Does overseas storage supplier need to register for VAT?

I act for a French-based business that offers a comprehensive storage facility for businesses of all sizes – there are no B2C sales. The client has recently taken out a long lease on a warehouse in Manchester which will be operated by two subcontractors and it is their first entry into the UK market.

My understanding is that my client should register for UK VAT because of the zero-registration threshold for an overseas business and charge UK VAT on all storage fees.

However one of my colleagues said that the client is a business with its main establishment in France and all of its UK customers will be VAT registered here so they will pay the VAT with the reverse charge on their own return; my client doesn’t need to register.

This outcome sounds much simpler than registering for VAT but how will my client claim...