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What is the postion with a UK retailer selling to foreign people in the UK

What is the postion with a UK retailer selling...

I have a client who supplies spares parts - sometimes retailing at £200 - other times £3000 plus.

Because they are a specialist, they often get overseas visitors coming to them and visiting their shop.

When they sell, they sell the goods, and apply UK VAT.

A couple of these visitors have said that they, with other UK suppliers, have a form which enables them to recalim the VAT when the goods leave the UK.

Is this true? If so, what does my client need to do?

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By Kev70
26th Oct 2011 15:18

The client must charge VAT if he is running a retail shop, at all times. The only way that the visitors to your clients can get a refund if your client is a member of the Retail Export Scheme (which he would need to register with HMRC).  Otherwise the visitors do not have a chance to reclaim VAT. 

It may be advisable for your client to become a member of this scheme so that his visitors are not discouraged to buy from him when they realise that they are unable to reclaim VAT if your client is not part of the scheme

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