Question regarding VAT and exporting of goods


One of my client companies offers IT hardware spares as a service and have received the following proposal from a US company:

The US company supplies IT hardware to customers in various European countries and want the UK company to assist with the parts service as follows:

The US company will ship consignments of spare parts to the company in Nottingham to keep. When any of the customers of the US company need spares the company in Nottingham (UK) will ship parts to where they are required in Europe.

Please note that the UK company will not be buying the parts but will only be keeping stock for the US company and fulfilling orders as and when they arise. They will then charge the US company for this service.


What are the implications of this business approach in terms of VAT, Tax, registration requirements etc.

Please advise.

Kind regards
Thulani Simbani
Tel: +44 (0) 7776225353

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