If goods are sent from the United Kingdom to a customer in another EU Member State, and that customer is not registered for VAT (i.e. the customer is private individual / charity etc), UK VAT at the standard rate will normally be charged. These supplies are regarded as ‘distance sales’, for VAT purposes.
If total distances sales by a business to any Member State exceed that member state’s distance selling threshold, the business must register and account for VAT in that member state (and not UK VAT). The distance selling limits are based on calendar year and are usually either €35,000 or €100,000.
If your business or any of your clients sell goods to non-VAT registered customers in other EU countries, it should monitor its distance sales to each EU country in line with the relevant thresholds.
For assistance email one of our VAT specialists on firstname.lastname@example.org