Charging VAT on B2B Sales Order

Charging VAT to a UK company for a B2B sale for their US customer

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We have a UK VAT registered customer who have placed a B2B order with us for shipping to the USA for mainly hardware and a software subscription. They have zero-rated all of the ordered products - is this correct? I'd have thought we would charge standard rate as we are billing the UK company who are our customer who are in turn billing their USA customer. Are we to zero or standard rate to the UK business?

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RLI
By lionofludesch
06th Nov 2020 18:54

It's the classic "who is supplying what to whom?"

You could be right - but make sure of your facts.

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By paul.benny
07th Nov 2020 09:11

Ship-to address determines the VAT treatment. If you are arranging shipping direct to the US, then your customer is correct.

As with any export, you need to ensure you have evidence that the goods have left the UK. Your carrier should be able to provide this.

Check VAT703 for full information

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Replying to paul.benny:
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By lukeanderson
07th Nov 2020 11:51

Yes we are shipping direct to their US customer. Many thanks for your help, certainly good to know for now and the future.

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