VAT on goods despatched to Israel

JJH1969 Registered Posts: 110 ? ? ?
I have a new client who exports to Israel. Some of the goods they export are childrens clothing i.e ZR and some are adult clothing i.e SR. Does any one know what the VAT treatment would be when exporting to Israel?


  • amurray
    amurray Registered, MAAT, AATQB Posts: 304 Dedicated contributor ? ? ?
    Hi Juliet,

    I believe it would be Zero Rated - aslong as the customer they are exporting to are TAX Registered. The customer in Israel would then pay any taxes.

    Completed AAT in March 2020
  • Jade Hunt
    Jade Hunt Registered Posts: 19 Dedicated contributor ? ? ?
    I believe this would be zero rated providing you send the goods to a freight forwarder. If your client is another UK based company you would charge VAT as normal and they would invoice the customer excluding VAT?
  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    Providing the customer billing address is in Israel and the goods are being delivered to Israel it will be zero rated.

    If your client arranges the freight then this is a direct export. If the customer arranges the freight (ie the goods go by freight forwarder) this is an indirect export. Both qualify for zero-rating as long as your client obtains proof of export.

    Whether the goods go via freight forwarder is irrelevant if the billing address is in Israel. If the billing address is in the UK and the goods go via freight forwarder you will need to charge VAT.

    See HMRC VAT Notice 703 for more info.
  • JJH1969
    JJH1969 Registered Posts: 110 ? ? ?
    Thank you all for the replies :-)
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