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.
Replies (5)
Please login or register to join the discussion.
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)
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.