As a VAT registered business in the United Kingdom (UK) we have certain obligations to fulfil when selling vat rated goods both inside & outside the UK. This page outlines how we will conduct business in relation to charging VAT in particular for export purposes.
Any goods supplied in the UK which are subject to VAT at the current rate must be charged accordingly.
EXPORT TO ANOTHER EU COUNTRY:
If you wish to export goods from the UK to another country in the EU then under certain circumstances we can ZERO RATE the VAT.
In order for us to do this in line with HMRC Customs & Excise we must ensure the following criteria are met.
1. The purchaser must be registered for the equivalent of VAT in the country in which they are resident and the goods are being delivered directly to that country.
2. They must provide us with proof of their tax registration details in full with the country prefix code which can then be verified with the EU Tax office.
3. Payment should be made directly from the named purchaser on the invoice electronically into our bank.
4. We require evidence of the ‘removal’ of the goods from the UK in the form of haulage invoices, ferry tickets etc to show UK Customs the goods have physically left the UK.
5. Once the transaction is complete we will then complete the relevant paperwork for UK Customs informing them of the export and the customer’s details. This information is then passed to the relevant Tax Office in the destination country.
UNLESS YOU CAN MEET ALL THE REQUIREMENTS OUTLINED ABOVE VAT WILL BE CHARGED NO EXCEPTIONS.
EXPORT TO A COUNTRY OUTSIDE THE EU.
Goods being sold outside the EU do not attract VAT at the current rate and can be sold ZERO RATED.
We can supply goods for this purpose and NOT CHARGE THE VAT if the following criteria are met.
1. The goods must be sold to a person residing in a country outside the EU.
2. We require proof the goods have left the UK and been delivered to the destination country outside the EU.
This is impossible to prove at the point of sale as the goods are still within the UK. We cannot accept any documentation showing the intention to remove the goods.
If we are invoicing a UK address for onward shipping to a non EU country then the VAT will be charged and it is the responsibility of the purchaser to reclaim the VAT upon actual removal from the UK.
WE WILL IN ALL CASES CHARGE THE VAT ON THE SALE PRICE NO EXCEPTIONS.
We will then hold the VAT element of the price as a deposit pending the receipt of the correct shipping paperwork showing the removal of the goods from the UK. This must be received within 3 Months of the sale date or the deposit will be retained and used to repay the duty to UK Customs.
We require the ‘Bill of laden’ to be sent to us in order for us to verify this with the shipping agent.
Once we are satisfied the goods have reached the destination country (Outside the EU) we will refund the full amount of VAT.
THE ABOVE OUTLINES HOW WE DEAL WITH NON EU EXPORTS. THERE ARE NO EXCEPTIONS TO THIS. IF YOU DO NOT WISH TO DEAL IN THIS WAY THEN WE WILL NOT CONDUCT BUSINESS WITH YOU.
IF WE ZERO RATE A SALE OF GOODS FOR EXPORT AND DO NOT HAVE THE RELEVANT PAPERWORK SHOWING THEIR REMOVAL FROM THE UK WE ARE LIABLE FOR THE FULL AMOUNT OF VAT TO BE REPAID TO UK CUSTOMS.
GCS Machinery - VAT Export Rules