Export VAT

Portandy
Portandy Registered Posts: 15 New contributor 🐸
in VAT
Hi,

I Hope somebody can help.

We usually only sell to the UK but have had a large order for Europe. The company is based abroad but they had the goods delivered to a UK address which is also the billing address.

They have sent us a tax exemption form.

However, I seem to remember from a previous job that export sales sent to UK addresses are subject to VAT.

Can anybody clarify this?

Thanks

Comments

  • oakley
    oakley Registered Posts: 73 Regular contributor ⭐
    If the goods are being sent to a UK address you must charge VAT, it is only exempt when sent abroad. If this becomes the first of many sales watch out for Intrastat, EU Sales lists etc. You can always call HMRC for free advice too.
  • karenv
    karenv Registered Posts: 114 Dedicated contributor 🦉
    We normally charge the vat and ask for proof of export.By that I mean proof the goods were shipped abroad. Such things as consignement notes showing the goods arrived in the other country. Once we have evidence of this we refund the customer the vat they paid.
    However as you have a valid exemption certificate I would give HMRC a call.
    I have only come across this certificate when trading with disabled people and charities.
  • Jon_1984
    Jon_1984 Registered Posts: 186 Dedicated contributor 🦉
    Hi Paul

    Agreed with all the others delivery to a UK address is subject to UK VAT unless the customer can prove they have removed the goods from the UK ( also applies if overseas customers collect from your premises ).

    On a practical note you will need to keep a file with their proofs of export and copy invoices etc. ready for your next VAT inspection.

    EC sales will also need to need to completed at end of relevent VAT period.

    Be aware that if you provide more than circa Eur 80K to any one country they may require you to register for VAT there and charge their VAT on orders to that country.

    The other thing to watch out for is there is a EU site that allows you to authenticate EC vat numbers - you MUST make sure this is valid before you accept a EU VAT number to exempt supplies or it causes hours of pain.

    I would call up HMRC ref the certificate though to double check that out.

    Jon
  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 Regular contributor ⭐
    Standard rate

    As per vat notice 725, para 4.3, in order to zero rate supplies to within EU you have to meet three conditions, you can meet one by obtaining customer's vat number however, if you delivered goods to uk I do not think that you meet the following conditions to qualify for zero ratings.

    • the goods are sent or transported out of the UK to a destination in another EC Member State; and
    • you obtain and keep valid commercial evidence that the goods have been removed from the UK within the time limits set out at paragraph 4.4.
  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 Regular contributor ⭐
    Jon_1984 wrote: »

    Be aware that if you provide more than circa Eur 80K to any one country they may require you to register for VAT there and charge their VAT on orders to that country.


    Jon

    I am not sure I agree with Jon that you need to registered in other EU contries unless you do distance sales to non-vat registered customer.

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