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Exporting and and non-EU VAT

Client has begun exporting goods to a number of non-EU countries. An example is Israel where he has been advised that 17% VAT will be payable on the goods. Is there anyway of offsetting / reclaiming this, other than possibly registering for VAT on the relevant country?


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28th Jun 2012 16:14

Exports from UK

Exports from the UK should be zero rated. Where does the 17% come from? If it is import VAT or duty in Israel then he will need to seek advice there.

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By taxguru
28th Jun 2012 17:30

Some countries do charge VAT on imports. As this is not WHT any tax relief is unlikely. You should be able to claim this as an expense incurred "wholly and exclusively" for the business.

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01st Jul 2012 08:52

The Importation of goods into Israel will be subject to VAT and possibly Customs Duty. What are your client's terms of tradec with its customers are they DDU or DDP or similar. This will determine who has to pay the VAT and Duty at import. Also, if your client's customers are VAT registered it would be preferable if the terms were DDU as they can import and recover any VAT.

If your client is responsible for importing the goods he may have to consider wherther he is requirred to register for VAT in Israel.

The same scenarios may well apply to other countries he is selling to.

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