VAT and international customers

[Morpheous]

I am starting an online business which will be selling items (some of which will require a VAT levy). It is not clear to me whether VAT is a function of:

1). The location (i.e. registered address) of the company making the sale
2). The location of the customer/client

In other words, even though the case is clear cut when dealing with UK customers, I am not sure whether I should be charging VAT to a customer/client who lives in the US (for an example).

If I have to charge US customers VAT as well, this puts me at a competitive disadvantage to a US company who can offer the same product/service to the customer at a lower cost because they are not encumbered with VAT - or am I missing something here?

I would be grateful for some feedback/clarification of this issue

[RAL]

I am starting an online business which will be selling items (some of which will require a VAT levy). It is not clear to me whether VAT is a function of:

1). The location (i.e. registered address) of the company making the sale
2). The location of the customer/client

In other words, even though the case is clear cut when dealing with UK customers, I am not sure whether I should be charging VAT to a customer/client who lives in the US (for an example).

If I have to charge US customers VAT as well, this puts me at a competitive disadvantage to a US company who can offer the same product/service to the customer at a lower cost because they are not encumbered with VAT - or am I missing something here?

I would be grateful for some feedback/clarification of this issue

If you selling goods, then you zero rate the items as long as you have proof of export. Here is vat notice 703 (http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&id=HMCE_CL_000130&propertyType=document).

[Wavecrest Ltd]

You do not have to charge VAT for customers outside of the EU but you must have proof of export. If you are selling to non VAT registered clients in Europe, you have to add UK VAT to your prices. If you are selling to VAT registered clients in Europe you do not have to add UK VAT to your prices but you must show your clients (European) VAT number on your invoice.

Best regards
Glen