Who pays VAT when goods are shipped directly to the customer from factory in Taiwan.


I’m a British citizen currently residing in Taiwan and own a limited company here that ships goods directly to customers in the UK (20%) and also outside of the UK (80%).

I am planning on returning to the UK in the near future and will close my company in Taiwan in order to re-register it in the UK. However, to reduce costs I would like to continue shipping to UK and non-UK customers directly from my supplier in Taiwan, rather than first importing them to my company and then forwarding them to the customer.

As far as I understand, invoices to customers outside of the UK should be zero-rated for VAT, but how about customers within the UK? Since they will be paying import duty and VAT to HMRC upon receiving the goods, does this mean their invoices from my UK-registered company can also be zero-rated?

Any help regarding this matter would be much appreciated.

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