This post also assumes that you have basic knowledge of how VAT works. This is acceptable evidence that the goods have gone abroad. If you send goods by road across the EU before they’re finally exported, you’ll need either: If you do not have one of these, you cannot zero rate the sale. Acceptable documents for evidence include: To ensure your exports run smoothly and you charge and pay the correct amount of VAT on goods and services exported in and outside of the EU, here are a few handy checklists to follow. As B2B sales to EU countries are considered outside of the scope of UK VAT, you don’t need to charge any VAT on behalf of HMRC in regards to them as long as the reverse charge applies. Under Part One, the supplying vendor will charge output tax at the standard rate of 14% on the supply of the movable goods to the qualifying purchaser. For EU sales you do not need to fill in a customs export declaration form. However, to benefit from the zero-rating, you need to prove that goods have been exported within three months of sending them or receiving full payment. Provide the customer with a VAT invoice and keep copies of these invoices. Remember: though sales are zero-rated, they still need to be declared on your VAT return. Consignment stocks are treated as supplied in the UK and liable to UK VAT unless you’re also registered for VAT in the EU country that they’re sent to, in which case they can be zero-rated (as long as you meet all the usual conditions). If goods are subject to excise duty, you pay this at the same time as you pay VAT and import duty. Sales to a country inside the EU are called ‘dispatches’ or ‘removals’. Tide, the Tide logo, the Swell, and Do less banking are trademarks and trade names of Tide Platform Limited, and may not be used or reproduced without consent of the owner. The government via GOV.UK’s VAT Notice 741A Section 5.1 suggests that “if you’re a UK supplier providing services in an EU member state you should check with your customer and that member state how their rules work.”. So instead of actually doing this, they need to declare both the output tax they would have charged you and the input tax you would have paid them in their VAT return under the same transaction, essentially cancelling each other out. Check that the country you’re dealing with is part of the EU. Thankfully, HMRC’s VAT Mini One Stop Shop (VAT MOSS) scheme saves you the hassle and increased workload by allowing you to register and pay VAT on export sales to HMRC instead. Check whether you need to complete an Intrastat return. You’ll not have to report these sales on an ESL. (If any VAT is due in the destination country, the recipient pays it there.) Find out whether you should pay Import VAT on goods or services purchased from abroad. But you have to operate the ‘reverse charge procedure’ when the goods come back, you charge yourself VAT, and then reclaim it in the normal way. The total value of sales to EU countries should be recorded on your VAT return under ‘dispatches’ or ‘removals’. 4 Ensure eligible for export VAT exemption. Exports at 0% VAT: How to get VAT Refunds on Exports in UAE. You may have to account for UK VAT unless you’re also registered for VAT in the EU country where you send them, in which case you can zero-rate them as long as you meet all the usual conditions. Input VAT on Exports. UAE - 800 82559 / Saudi - 800 2442559 / Bahrain - 800 12559 MENA Government issues new VAT guidance for EU imports and exports post-Brexit. You might have to register for VAT in that country. This means that sales to customers outside of the EU can be zero-rated. You can find out more about getting someone to help with customs on the GOV.UK website. You’ll need to use form ‘Certificate of posting goods form 132’, or ask the Post Office for a certificate of posting. The EU repairer or processor will not charge you VAT for their work if you’re registered for VAT in the UK. Some EU countries have a simplified system for this but you’ll need to check with the VAT office in that country. You might sell goods to a non-EU customer, but first send them to an EU business for processing. This card is for payments from Tide accounts. Export value-added tax (VAT) is a tax that is added to goods or services you sell to customers outside of the UK. How much VAT you pay or whether you’re required to pay any at all depends on what you’re exporting and where you’re exporting to. This guide and the links we’ve included will help you do that, ensuring you stay on the good side of the tax collector and reclaim the correct amount of money you’re owed. You must keep all the evidence for 6 years and show it to HMRC if they ask to see it. VAT is a tax on goods used in the UK and EU, so if goods are exported outside the UK and EU, you do not charge VAT. But each country has a ‘distance selling threshold’. 2. Therefore, HMRC recommends that you get someone to deal with customs declarations for you, such as a freight forwarder, custom agent or broker or fast parcel operator. In these cases, VAT is charged and due in the country of import and you don't need to declare any VAT as an exporter. Find out if VAT is due when you sell, supply or transfer goods out of the UK, and about zero-rated goods, proof you must keep and which forms to fill in. Export of goods under UAE VAT. Where it applies to services which you receive, you, the customer, must act as if you are both the supplier and the recipient of the services. If the customer collects them you can zero-rate the supply, unless they’re for private consumption, in which case they’re liable to UK VAT in the normal way. Complex rules and regulations govern imports and exports. The qualifying purchaser is then entitled to obtain a refund of the VAT paid from the VAT Refund Administrator, upon compliance with the prescribed conditions. If the evidence is unsatisfactory, then you may have to account for VAT on the sale. Otherwise, they’ll give you a customs dispatch pack receipt copy. Your EORI number is unique and valid throughout the UK and EU. In practice, this is reflected on paper by shifting the normal rules of responsibility for charging VAT from the seller (you) to the buyer (your customer), making you void of any VAT responsibilities in regards to the sale. If the reverse charge does not apply, however, you may be liable to register for VAT in your customer’s local country. Export of goods can be of 2 types: Export of goods to non-GCC VAT implementing States; Export of goods to GCC VAT implementing States; It is important to identify whether the destination of goods exported is a GCC VAT implementing State or not. For further information visit fscs.org.uk. However VAT looks to your business, it’s important to get it right to ensure that a) you’re complying with HM Revenue & Customs (HMRC) and local laws in the countries you operate in, and b) you’re able to reclaim the correct amount of tax on your VAT return. If you do not get this evidence in time, you’ll have to account for the VAT on your return. If your sale is zero-rated, your invoice should include the customer’s VAT number. Tide also offers bank accounts provided by ClearBank (ClearBank® Ltd. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 754568). 3. If you sell goods, check the EU VAT thresholds for each country in case you need to register for VAT and apply the local VAT rate on sales. We’ll send you a link to a feedback form. If you make sales or purchases from countries who are members of the EC, then certain VAT regulations will apply, in particular you may need to complete a quarterly EC Sales List. The most common examples are mail order or internet sales to private individuals in an EU country. VAT: how to report your EU sales How VAT … Top Tip: VAT exemption means that the goods or services you sell are outside of the scope of VAT and thus considered VAT exempt. This webinar will throw light upon the following areas: 1.What qualifies as export/import of goods & services from the UAE. The process of recording the value of exports on your VAT returns will stay the same. Provide customers with import paperwork. As a general rule, exports of goods to VAT-registered EU customers and exports of goods and services to customers in the rest of the world can be charged at 0% for VAT purposes. Export VAT for non-EU countries. When exporting goods from Germany to non-EU countries a VAT free treatment is possible. You’ll need an EORI number even if you only occasionally export goods outside of the UK and EU. From 1 January 2021, new rules and rates on exports will come into effect to reflect Britain’s post-Brexit relationship with the EU. For example, let’s say Helen has a business selling t-shirts to consumers in Ireland and Germany. Contact the tax authority in that country to check. You can find an up-to-date list of EU member states on the European Union website. Some of the changes are covered in this post, but we’ll update the content as and when new rules are rolled out. If your customer isn’t registered for VAT, the transaction is classed as a ‘distance sale’ and you need to charge UK VAT. 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