VAT FOR AGENT/INTERMEDIARY

VAT FOR AGENT/INTERMEDIARY

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BACKGROUND, THE COMPANY ARE A RESELLER OF TRANSPORTATION SERVICES. THEY ACT AS A BROKER,OR INTEMEDIARY IN ARRANGING TRANSPORTATION SERVICES ON BEHALF OF THEIR CUSTOMERS. THEY HAVE ACCOUNTS WITH NATIONAL AND INTERNATIONAL CARRIERS WHO COLLECT AND DELIVER THEIR CUSTOMERS GOODS AND INVOICE THEM AT A DISCOUNTED RATE. THEY DO NOT OPERATE PLANES OR LORRIES OR DRIVERS AS A COMPANY. THE CARRIERS TAKE CARE OF THE TRANSPORTATION AND THEY PROVIDE THE CUSTOMER SERVICE, DISCOUNTS ON TRANSPORTATION SERVICES AND CONSOLIDATING INVOICING.

THEY HAVE RECD AN ENQUIRY FROM A PROSPECTIVE CUSTOMERWHOSE BUSINESS IS BASED ON SARK CHANNEL ISLANDS. THEY REQUIRE THE COMPANY TO ARRANGE THE CARRIAGE OF GOODS FROM UK MAINLAND TO SARK, IN EFFECT THEY ARE IMPORTING GOODS FROM UK INTO SARK AND THEY WANT THE COMPANY TO ARRANGE THE TRANSPORT AND INVOICE THEM AS WE WOULD OUR OTHER CUSTOMERS WHO ARE UK BASED. THEIR QUESTION IS, WOULD THEIR INVOICES FROM US (THE COMPANY) BE SUBJECT TO UK VAT AND IF SO AT WHAT RATE.
ANONYMOUS

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Euan's picture
By Euan MacLennan
04th Jul 2007 10:30

Zero rate
The Channel Islands are not part of the EC VAT territory. Whether you are the carrier or a freight forwarder, the supply of transport of goods for export from the UK to somewhere outside the EC is subject to UK VAT at the zero rate. The zero rate extends to transport within the UK to the place where the goods are exported.

Incidentally, it would make it easier to read if you do not type your question all in capitals.

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