I have a UK based client who is looking qoute for sale of goods to a business who has offices based in India and the USA. The orders will be placed by the Indian office but goods will be despatched to their clients at various locations in UK, EU and Israel. The Indian office will be invoiced for the goods. What is the Output VAT treatment please? Any guidance will be much appreaciated.
Replies (2)
Please login or register to join the discussion.
In general, VAT is governed by the ship-to address, not the bill-to.
So in the examples given, sales to UK customers are standard-rated, to VAT-registered EU customers are zero-rated as long the requirements are met, and sales outside the EU are zero-rated.
VAT notice 703 will tell you what you need to know, including the specific requirements to be able to zero-rate and the reporting obligations such as EC sales list and Intrastat.