[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1592
  • Offline
  • View profile
  • Send message

Supplying goods and services outside the UK

20/06/2018 08:17:23
Supplying goods outside the UK

If you sell, supply or transfer goods out of the UK to someone in another country you may need to charge VAT on them. You can zero rate most supplies exported outside the European Union (EU), or sent to someone who’s registered for VAT in another EU country.

If you sell goods or services to someone in another EU country, who is not VAT-registered, you charge VAT in the normal way.

Sales to another country inside the EU are called ‘dispatches’ or ‘removals’. ‘Exports’ describes sales to a country outside the EU.

Exports, dispatches and supplying goods abroad

VAT on goods exported from the UK

VAT and the single market


Supplying services outside the UK


The ‘place of supply’ is the place where you make a supply and where you may be charged and pay VAT.

With services, deciding the place of supply can be complicated. There are various rules that apply, depending on:

  • whether you’ve more than 1 business location,

  • the kind of service you give,

  • the place where your business or your business customer ‘belongs’,

  • whether or not your customer is ‘in business’ and

  • where the service is performed.

  • How to work out your place of supply of services

    VAT place of supply of services

    This message was edited 1 time. Last update was at 02/11/2018 13:08:32

    [Avatar]

    Supplying goods outside the UK

    30/07/2018 13:28:03
    Unless you are on the Flat Rate Scheme, then you will be required to pay HMRC VAT on your supplied goods.
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 13:28:03
    If a UK seller sell goods to a UK customer that are bought in and will remain permanently in another EU state , then that State VAT is applicable , YES? If you the seller are not VAT registered in that EU State yet, so can we invoice the UK customer with NO UK VAT =Outside the scope rule and wait for our EU VAT registration , then once obtained we credit the 1st invoice 100% and then re invoice again with the actual EU VAT applicable?
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 13:28:03
    UK co sells to UK co , goods that are bought in and remain in another EU state, so local EU VAT is chargeble, yes?
    But seller Uk Co is not yet registered for the local EU VAT, so are we ok to
    1. invoice to UK Co with NO UK/EU VAT ie "Outside the scope of UK VAT", BUT then once we are VAT registered for the EU VAT, we Credit the invoice IN FULL , then reissue a new good invoice with the local EU VAT and VAT number.
    [Avatar]

    Re:Supplying goods outside the UK

    30/07/2018 14:49:58
    We are UK Co selling to UK Co, goods that are bought in and remain in another EU State, so local VAT should be charged , yes?. BUT we are not yet VAT registered in that EU state , but hope to be in some months time. This is a large value sale and customer wants an invoice to pay us , and so we are proposing the following:_
    1. We issue a UK "provisional"invoice with NO UK VAT - "outside the scope", then when we obtain the EU VAT registration in 2/3 months , we will
    2. Credit the invoice in full , and
    3. Re issue Invoice with EU VAT number and the local EU VAT.

    Do you see any problems with this arrangement, or can you suggest another option?.

    [Avatar]

    Supplying goods outside the UK

    30/07/2018 14:49:58
    I have just started exporting various posters to South Africa: movie, football etc, nothing unlawful. I have my invoices from the suppliers in the UK, my invoice from the courier for the collection and delivery to SA, and will be raising my invoice for my customer: zero VAT rated. I have my EORI No.
    1) Do I need any other documentation: ie an export Commodity Code and if so what would that be as I don't have one?
    2) The first order I sent didn't include on the Commercial Invoice my EORI No. or my company name, can I include that in my first VAT reclaims figure?
    3) As I am using a courier for the transporting of the posters, is that proof enough that they are leaving the country for their SA destination?
    4) When suppliers in the UK charge me delivery on the posters to my business can I include the total VAT on the order in my VAT reclaims figure?
    5) On the Commercial Invoices from the Courier: Parcel Monkey, I had the 'Total Declared Value (GBP)' as the price for the posters only, as nowhere did their website refer to delivery costs. However, these costs will be included on the invoice to the customer as they are substantial. Is this the correct procedure?
    6) Finally, as this is all very new to me and I am doing my very best to read through the relevant sections on the HMRC website to see that I am doing everything I should, I am very worried that there is something I might have missed and will be held accountable for at a later stage. Please can you assist by telling me if there is anything else I need to do to ensure that my business is acting lawfully and responsibly?
    Many thanks
    Trish Edwards
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 14:49:58
    I have just found the following:
    Re: 3. Export outside the EU
    Task No. 5 states that 'When filling in the value of your goods, use the price you're selling them for (listing separately any freight or export insurance you included in the price). Does this mean the delivery I paid of £32.97 should have been added to the cost of the posters which were £29.16 so that my 'Total Declared Value GBP' should have been £62.13? I will be including the delivery on the invoice to the customer will that be a problem on my VAT return as I didn't show it on the Commercial Invoice. I have checked and I do not have tax or duty to pay on the goods going into SA.
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 17:39:48
    In response to Anonymous, who posted :
    "Unless you are on the Flat Rate Scheme, then you will be required to pay HMRC VAT on your supplied goods."
    We have asked our Technical experts, and they have advised they need a bit more information to answer fully, but if the query is in relation to the supply of goods outside the UK, then please refer to Public Notices 725 Single Market & 703 Goods exported from the UK, in regard to zero-rating the supplies of these goods….
    VAT and the single market notice 725
    &
    VAT on goods from the UK notice 703

    Hope this helps and thanks for your question.

    This message was edited 1 time. Last update was at 07/08/2018 10:32:41

    [Avatar]

    Supplying goods outside the UK

    30/07/2018 17:44:10
    In response to Anonymous who asked:

    "If a UK seller sell goods to a UK customer that are bought in and will remain permanently in another EU state , then that State VAT is applicable , YES? If you the seller are not VAT registered in that EU State yet, so can we invoice the UK customer with NO UK VAT =Outside the scope rule and wait for our EU VAT registration , then once obtained we credit the 1st invoice 100% and then re invoice again with the actual EU VAT applicable?"

    Thanks for your question. We have asked our Technical experts, and they have advised there is no UK responsibility for invoicing with VAT as it is completely outside the scope of UK VAT. The only rules that you need to follow are the member state’s authorities. The contact details are in VAT notice 723A section 8 .

    Hope this helps.
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 17:46:58
    In response to Simon Daynes who asked:

    "UK co sells to UK co , goods that are bought in and remain in another EU state, so local EU VAT is chargeble, yes? But seller Uk Co is not yet registered for the local EU VAT, so are we ok to 1. invoice to UK Co with NO UK/EU VAT ie "Outside the scope of UK VAT", BUT then once we are VAT registered for the EU VAT, we Credit the invoice IN FULL , then reissue a new good invoice with the local EU VAT and VAT number."

    Hi and thanks for your question. We have asked our technical experts, and they have advised there is no UK responsibility for invoicing with VAT as it is completely outside the scope of UK VAT. The only rules that you need to follow are the member state’s authorities. Please find contact details in VAT notice 723A section 8 .

    Hope this helps.
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 19:08:55
    In response to Anonymous (Trish Edwards) who asked:

    "I have just started exporting various posters to South Africa: movie, football etc, nothing unlawful. I have my invoices from the suppliers in the UK, my invoice from the courier for the collection and delivery to SA, and will be raising my invoice for my customer: zero VAT rated. I have my EORI No. 1) Do I need any other documentation: ie an export Commodity Code and if so what would that be as I don't have one? 2) The first order I sent didn't include on the Commercial Invoice my EORI No. or my company name, can I include that in my first VAT reclaims figure? 3) As I am using a courier for the transporting of the posters, is that proof enough that they are leaving the country for their SA destination? 4) When suppliers in the UK charge me delivery on the posters to my business can I include the total VAT on the order in my VAT reclaims figure? 5) On the Commercial Invoices from the Courier: Parcel Monkey, I had the 'Total Declared Value (GBP)' as the price for the posters only, as nowhere did their website refer to delivery costs. However, these costs will be included on the invoice to the customer as they are substantial. Is this the correct procedure? 6) Finally, as this is all very new to me and I am doing my very best to read through the relevant sections on the HMRC website to see that I am doing everything I should, I am very worried that there is something I might have missed and will be held accountable for at a later stage. Please can you assist by telling me if there is anything else I need to do to ensure that my business is acting lawfully and responsibly? Many thanks Trish Edwards"

    Hi, and thanks for your question. We have asked our Technical advisers, who have advised the following:

    1) You will need to meet the conditions in VAT notice 703 section 3.3 to zero rate the sale, the evidence examples are in section 6, the evidence needs to prove that the specific goods you sold were moved outside the EC within the time limits,
    2) We're a bit unsure what you are asking in this question. If you are asking about recovering VAT, you would need to meet the conditions in VAT notice 700 section 10 and you would need to prove that they were eligible for recovery.
    3) Please see answer 1)
    4) If you meet the conditions in VAT notice 700 section 10
    5) You can chose to charge whatever price you want for delivery, however the VAT liability will depend on the contract with the customer. Please see VAT notice 700/24
    6) You should make sure you are meeting the conditions in the notices. If you have questions about the notices please contact the helpline on 0300 200 3700.

    Hope this helps.
    [Avatar]

    Supplying goods outside the UK

    30/07/2018 19:16:56
    In response to Trish Edwards, who asked:
    "I have just found the following: Re: 3. Export outside the EU Task No. 5 states that 'When filling in the value of your goods, use the price you're selling them for (listing separately any freight or export insurance you included in the price). Does this mean the delivery I paid of £32.97 should have been added to the cost of the posters which were £29.16 so that my 'Total Declared Value GBP' should have been £62.13? I will be including the delivery on the invoice to the customer will that be a problem on my VAT return as I didn't show it on the Commercial Invoice. I have checked and I do not have tax or duty to pay on the goods going into SA."

    Thanks again for your question. Our Technical Advisers have advised that you should refer to the following guidance, Goods sent from abroad - Tax and Duty

    Hope this helps, and thanks for using the HMRC Online Customer Forum.

    This message was edited 2 times. Last update was at 07/08/2018 10:35:17

    [Avatar]

    Supplying goods outside the UK

    03/10/2018 09:45:28
    dear admin, please advise if I can recover vat paid in uk for the sales of goods in france ???i have exceeded there €82,800* for sales but was not aware and paid vat from that in uk
    [Avatar]

    Re:Supplying goods outside the UK

    03/10/2018 14:41:40
    You will need to refer to public notice 700 section 10 which will show that you cannot meet the input tax rules in order to reclaim this VAT.
    VAT Notice 700 Section 10
    [Avatar]
    • HMRC Admin 50
    • Joined: 21/06/2017 15:34:03
    • Messages: 1592
    • Offline
    • View profile
    • Send message

    Supplying goods and services outside the UK

    02/11/2018 13:12:01
    Posted by an Anonymous user on 29/06/2018 11:42

    Good Afternoon,

    I am a truck driver based in UK however, I have been offered to work for a Belgium Company as a hire driver as a contractor, Please can you confirm if I have to charge VAT on my hire invoices? I will be working on behalf of my Limited Company , from where I will be issuing invoices to the Belgium Company.

    Thanks in advance,

    Reply