We are a UK company and have received a vehicle imported from New Zealand for repair and restoration work. It has been imported directly to us under a C88(6) (we are listed as importer) and we are conducting the work at our UK premises and exporting it directly back to NZ. The vehicle will not be driven on UK roads.
The customer does own a business in NZ but I believe it may have been imported under a personal name. Should I charge VAT on the cost of the parts and labour used? I looked at VAT notice 741A which seems to suggest if B2C, place of supply is UK and so yes, but if a business, then B2B puts place as NZ and therefore no. Customer has spoken to HMRC who gave another viewpoint that if we applied for an inward processing determination, we can repair/restore vehicle without charging VAT.
Has any of my wonderful colleagues had any experience of this which they can share to help me please. Many grateful thanks in advance