Exporting VAT Advice.

If you sell, supply or transfer goods out of the UK to someone in another country you may need to charge VAT on them. Although no other export taxes are charged in the UK, you may have to deal with local taxes overseas, including import taxes.

The details can be complex, though thousands of businesses manage to import and export every day without any problem.  If you are new to international trade or only need to import or export occasionally understanding what needs to be done will help you get it right:

When exporting to EU customers that are VAT registered:

• You should get their VAT number.
• You can then zero-rate the sale, so that no export VAT needs adding.
• Retain proof that the goods have left the UK
• Keep a copy of the VAT invoice you have issued for your VAT records.
• In your VAT return you must detail each VAT-registered customer and the value of goods supplied on a separate EC Sales List.

For larger customers, you must make an intrastate declaration if the total value of the goods you:

• Send to other EU countries is more than £250,000
• Receive from other EU countries is more than £1,500,000
• You must provide details of these large EU Sales on a separate 'Intrastat' declaration each month.

If the EU customer is not VAT-registered:

• You charge export VAT at the normal UK VAT rate for those goods.
• Again, you issue a VAT invoice showing details of the export VAT charged.
• You do not need to complete an EC Sales List for sales to non-VAT registered customers, but the value of these sales is included in the Intrastat returns required from larger exporters.

However, export VAT is treated differently:

• If the total value of your sales (to a non-VAT registered customers) exceeds that country's VAT threshold you must register and account for VAT in that country.
• And you must charge the local rate of VAT rather than UK export VAT.

If exporting outside of the EU:

• Export VAT is not charged on sales to customers outside the EU.
• You can zero-rate these exports, so long as you retain proof that the goods have been exported.
• This also applies to goods exported via another EU country but ultimately to a non-EU customer. To qualify for zero-rating rather than charging export VAT, your records must include details of the final export outside the EU.

International VAT Specialists

Since export VAT was first introduced it has become increasingly complex. In fact, it's become so complex that many businesses struggle to cope with it. It affects almost every transaction therefore affecting the day-to-day operations of a business. Our international VAT specialists help advise and work with companies international to ensure their export VAT systems operate correctly, compliantly and as efficiently as possible. If we can help you or any of your contacts get in touch with one of our hull accountants