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Is it an export - VAT or no VAT?

May be massively overthinking this - Place of Supply

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A client has supplied goods ordered by a French based company, ultimately the goods were destined for Africa. They produced the goods and, as per their customers request, delivered them to their customers distributor/courier in the UK for future onward transport.

My client has invoiced their customer plus VAT, simply because that is what they always do - it is the first time they have supplied anyone outside the UK - and the customer is now querying the VAT charge and it has been passed to me to clarify.

On first glance I agreed with the customer - goods going out of the EU so no VAT - but thought I'd double check the guidance and now am not so sure... As my client was not involved in the export process and delivered within the UK does that change the Place of Supply to the UK and make VAT chargeable?

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By NDH
13th Jun 2019 12:37

They need to get proof of export from the customers delivery agent.

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13th Jun 2019 13:02

VAT notice 703, para 7.4 speaks to this.

As NDH has said, you need proof of export- details of the requirements are also set out in VAT703.

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13th Jun 2019 13:02

The place of supply is indeed the UK, and the supply does not involve the removal of the goods from the UK, VAT is chargeable. The supply may be zero-rated though, if the conditions for zero-rating and indirect export are met (see VAT Notice 703) and adequate evidence of the removal of the goods from the UK is obtained.

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By rwb
13th Jun 2019 13:26

Thanks all for the replies - exactly what I needed :)

Having had a quick read through VAT notice 703 para 6.6 is what I was after I think. My client, specifically, did not arrange for any onward transfer beyond delivery to a UK address as per the customer's request.

Apparently the director has an email trail stating that they were not going to deliver/supply outside the UK and any further transport etc. would be the customers responsibility.

Thanks again guys/girls, much appreciated

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