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Delivery to Malta via courier VAT

Hi

We have an order for a client in Malta.

They would like us to deliver the goods to their courier in the UK who will then consolidate other orders and ship everything out to Malta.

Am I right in thinking that we charge VAT as the goods were deliveried in England, or does the fact that it went to a courier make any difference?

Thanks

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Malta delivery VAT

Assuming that your customer is in business the service (transport service) you supply to them falls under the 'General Rule' and the Place of Supply is Malta and no UK VAT is chargeable.

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Malta delivery VAT

Thanks for your reply

What about the charge for the goods we supply. they will be delivered to their courier in the UK. Should VAT be charged on them?

 

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Make sure you retain proof of export!

The Courier firm should provide you with an AWB (Air way bill) showing the end delivery address (in Malta).  This is your proof of export so be sure to retain this with the sales invoice in case of inspection.  Otherwise, as Shawn king says, no problem with the sale being a reverse charge supply.

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Agreed the courier firm should provide you with proof of the movement of goods and the exact proof depends on the methood of transport. if by air an AWB or if by road it maybe a copy of the CMR. There are other alternative proofs of movement but your courier company should have experience in this area.

 

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I agree with all the above but I would suggest you check that the courier company, etc are legitimate. It sounds like a new customer so what do you know about them. Have all dealings been by email? It is probably genuine but this is just the sort of request many fraudulent traders make. We get quite a few requests like this and a few are quite plausible!

 

Note that you have to rely on their courier company providing you with the proof of export after you have released control of the goods. If they don't provide it you will be liable for the VAT unless you have some other acceptable (to HMRC) proof that the goods were exported. As you have no contract with the courier this may be difficult. Assuming you are getting payment in advance the way round this is to get them to pay you the VAT amount as well and refund it when you receive proof of export. Messy and costs a bit more in sending payment back and forth. It all depends on your relationship with the customer and the values involved.

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I forgot to add that the customer's VAT number must be shown on your invoice. Shaun's first comment was "assuming that your customer is in business". They need to be VAT registered (somewhere in the EEC) rather than just "in business" in order for no UK VAT to be charged. You should run an online check on the VAT number they give you to confirm their registration.

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