Confused about reclaiming VAT on furniture deliveries to the EU? You’re not alone. As a contract furniture specialist, we at the Contract Chair Company (TC3) have been delivering furniture across the EU for many years and, like most in the hospitality industry, we felt deeply the impact triggered by Bexit, which has complicated our previously seamless system for collecting cross-border VAT. Thankfully, we’ve found a way around this and in this article we will share our findings as well as solutions for our customers and other buyers.
Since the new VAT rules came into play in January 2021, we found that some furniture – specifically those manufactured in the EU and destined for customers in a different EU country – was being diverted to the UK to minimise VAT charges, which were impossible to reclaim.
In order to overcome this, we at TC3 have acquired an EU VAT number in addition to our UK VAT number. This effectively removes the need for costly and environmentally-unfriendly diversions to the UK. When we deliver furniture to customers within the EU, we will simply issue them an invoice which will include a VAT using this EU VAT number. These goods are then charged at the tax rate applicable for the country in question, which enables our customers to make their reclaims.
We recommend our customers to have their own EU VAT number, too. This way, they can report and reclaim any VAT payment made to TC3 for the destination country's tax authorities. Although it is not impossible for buyers who are not registered for an EU VAT number to make their reclaims, it is a much more difficult process. So if you’re a buyer of contract furniture, obtaining an EU VAT number would be a wise choice.
Do you have any questions? We used a customs agent to help us with our EU VAT registration and would be delighted to pass on their details.
Please do get in touch if you require furniture delivered to a destination anywhere within the EU, we are always happy to help. For more information on what we do, please see our client's projects, here, and browse through our extensive library of contract furniture, here.