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International trade VAT

International trade vat

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Hey,

If a UK business trades to another business outside the UK such as america, are the supply of goods zero rated VAT? I am little confused as online I have found some say zero rated and others say outside the scope.

Thank you. 

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By paul.benny
20th Apr 2021 11:11

Do the sources you mention refer to goods or services?
Goods exported are normally zero rated for UK VAT
Services may be out of scope.

(Edit - I read your question as referring to exporting goods from UK to other countries. If you meant goods that are already outside UK, that's a different question)

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Replying to paul.benny:
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By Accountsman123
20th Apr 2021 11:06

Hi Paul, would be for goods.

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By Paul Crowley
20th Apr 2021 11:06

Not zero rated
Outside scope

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Replying to Paul Crowley:
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By Accountsman123
20th Apr 2021 11:09

But doesn't the sales still have to appear in box 6 though? If outside the goods would not appear at all on the VAT return.

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By tom123
20th Apr 2021 12:29

Your software probably doesn't recognise an 'outside of scope' sale - I've never used any that have that categorisation.

Outside scope as far as your software is concerned is for things like journals etc, which do not go on the VAT return.

Thus, from a software perspective, zero rate the sale and it will appear on Box 6.

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