I’m starting a small online business, based in the UK, through Shopify.
Some of the products will be manufactured in the UK and then shipped to the UK and the EU.
Some other products will be supplied through a drop-shipping company with factories in the EU but no in the UK.
Probably my income won’t exceed 10K in the first year and I’m not VAT registered.
I can see three different scenarios in terms of VAT.
1. Product produced in the UK and shipped to the EU.
2. Product produced in the EU by the drop-shipping company and shipped inside the EU.
3. Product produced in the EU by the drop-shipping company and shipped to the UK.
Does anybody know in which case should I need to collect VAT from my customers?
Thank you.