Readers Forum: Reverse charge

I act for a UK based company that buys and sells bathroom fittings on a wholesale basis throughout the UK and EU.

In anticipation of Brexit a Dutch subsidiary company was formed – it rents a warehouse in Holland and imports stock directly from China and is therefore able to meet orders from EU customers.

However one customer in Sweden will only deal with the UK company even though the stock will be directly transferred from Amsterdam to Stockholm. The Dutch subsidiary company will therefore invoice my client for the goods with 25% discount (no Dutch VAT charged) giving my client a profit share to cover overheads. My client will invoice the Swedish customer for the goods once they have been delivered.

The Swedish customer says that he can do the reverse charge on his Swedish VAT return to sort things out ...