Chinese VAT

Sevren Registered Posts: 101 Dedicated contributor 🦉
Hi - I just want to check that I have this right in my head :

A company in the UK selling goods to a company int the UK - however the supplier is in China and the end customer is in China.

Therefore, I think that as far as the invoice is concerned, it is outside UK VAT as the goods never leave China (ie no VAT on invoice) - but I am presuming that the supplier will charge VAT equivelent (17%) and that this needs to be taken into account in the original quote ?

Many thanks


  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    I'm no VAT expert but:

    You sell goods outside the EC - outside the scope of UK VAT, no VAT charged.

    If the Chinese rules mean they have to charge their sales tax to the UK company then it forms part of the gross cost to the UK company. I have no idea what the rules are for the Chinese sales VAT but presumably the supplier knows what they are doing! :lol:
  • Sevren
    Sevren Registered Posts: 101 Dedicated contributor 🦉
    Many thanks !
Privacy Policy