VAT on goods despatched to Israel

JJH1969

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

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.

Cheers,
Andy

Jade Hunt

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

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

Thank you all for the replies :-)