Readers forum: VAT on website sales of goods

We have been appointed to act for a UK incorporated company that sells stationery to UK-based customers through its own website and also via an online market place (OMP). The company is a wholly owned subsidiary of a Dutch company and has no UK trading premises all decisions are made in the Netherlands; our office is the registered address with Companies House.

My questions relate to VAT; I have read HMRC’s guidance which is confusing.

My client holds some stock at a UK fulfilment centre of the OMP. As I understand it my client must register for UK VAT but will only charge VAT when this stock is sold to a VAT-registered customer. Is this correct? Otherwise the invoice from my client to the online marketplace (OMP) will be zero rated and the OMP will charge VAT.

For shipments where the goods start in the Netherlands...